Co-operative bank fraud case: ED raids over 10 locations in Bengaluru
Bengaluru: The Directorate of Enforcement (ED) sleuths on Thursday conducted raids in connection with the Shushruti Co-operative Society fraud case in Bengaluru.
According to sources, raids were carried out at more than ten locations across the city. Earlier, in 2022, the Bengaluru Central Crime Branch (CCB) had registered a case against the Shushruti Co-operative Society. Following its investigation, the CCB had arrested several individuals.
The society was established by N. Shrinivasa Murthy, who later appointed several of his family members as directors and members. The case was filed after it was found that the society had issued loans to insiders and failed to return money to depositors.
Following the CCB case, the ED launched its own investigation. Based on the FIR filed by the CCB, the ED registered an ECIR (Enforcement Case Information Report) and initiated action.
Sources stated that ED Karnataka is conducting search operations at more than 10 locations in and around Bengaluru in connection with Shushruti Souharda Bank, Shruthi Souharda Bank, and Shree Lakshmi Souharda Bank, along with their promoters, N. Shrinivasa Murthy and his family members.
This case pertains to the alleged cheating of over Rs 100 crore from more than 15,000 depositors, who were lured into investing with promises of high interest rates, sources added.
Subsequently, the collected funds were diverted through unsecured loans to associates. Most of these loans turned into non-performing assets (NPAs), and the money was laundered and used to purchase properties, indicating clear violations under the Prevention of Money Laundering Act (PMLA).
The proceeds of crime (POC) in this case are estimated to exceed Rs 100 crore, according to sources.
So far, more than 20 high-value properties — previously unidentified by the Karnataka Police under the Karnataka Protection of Interest of Depositors in Financial Establishments Act (KPIDE) — have been uncovered during the ED’s ongoing search operations, sources said.