ED Attaches Mutual Fund Units Worth ₹3.31 Crore in Akshatha Minerals Fraud Case
The Enforcement Directorate (ED), Bengaluru, has provisionally attached 62,914.316 units of HDFC Balanced Advantage Fund, valued at approximately ₹3.31 crore, in connection with an alleged bank fraud involving Akshatha Minerals Pvt. Ltd. and others.
The attachment order was issued on September 1, 2026, under Section 5(1) of the Prevention of Money Laundering Act (PMLA), 2002. The action targets investments that the agency alleges are linked to the proceeds of crime generated through the suspected financial fraud.
The ED initiated its investigation following an FIR registered by the Central Bureau of Investigation’s Anti-Corruption Branch (CBI-ACB), Bengaluru, against Akshatha Minerals Pvt. Ltd., its directors and others over allegations of cheating, criminal conspiracy and the use of forged documents.
According to the investigation, Akshatha Minerals, a company engaged in iron ore trading and exports, obtained credit facilities worth approximately ₹6 crore from Bank of India by mortgaging six properties.
The ED alleged that one of these properties, located in Jayamahal, Bengaluru, was falsely presented to the bank as belonging to the late Smt. Lakshmamma. Investigators found that allegedly forged Khata records, tax-paid receipts, betterment charge receipts and other revenue documents were submitted to create the mortgage. Bank of India subsequently disbursed ₹3 crore against the property.
The investigation further traced ₹1 crore from Akshatha Minerals’ bank account to the Catholic Diocese of Bellary Trust on February 13, 2010. The ED alleges that this amount, identified as part of the proceeds of crime, was subsequently invested and reinvested through various HDFC Mutual Fund schemes.
According to the agency, the money trail established that the original amount remained traceable through successive investments and was eventually represented by 62,914.316 units of the HDFC Balanced Advantage Fund.
The value of these units has reportedly increased from the original ₹1 crore to approximately ₹3.31 crore. The ED considers the appreciation in value to be the gains generated from the alleged proceeds of crime.
Earlier, the agency had filed a prosecution complaint before the Special Court in Bengaluru on March 28, 2026.
The latest attachment forms part of the ED’s ongoing efforts to identify and secure assets allegedly linked to the suspected bank fraud.
News Source : Directorate of Enforcement (ED) – Official Press Release, Government of India
