Bengaluru (Karnataka) [India], July 17 (ANI): The Enforcement Directorate (ED) on Wednesday launched searches at more than 15 locations in and around Bengaluru in connection with a multi-crore cheating case involving three cooperative banks — Shushruti Souhardha Bank, Shruthi Souharda Bank, and Shree Lakshmi Souharda Bank.
The searches are being carried out at the premises linked to the banks’ promoters, and his family members, officials privy to the development, told ANI.
The action follows allegations of cheating over Rs 100 crore from more than 15,000 depositors, said the officials.
According to officials, the accused lured depositors with promises of unusually high interest returns, thereby attracting large sums of money under false pretences.
Subsequently, ED findings revealed, the 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,” an official said, indicating clear violations under the Prevention of Money Laundering Act (PMLA), 2002.
ED’s Karnataka wing conducted the raids since early morning. “The Proceeds of Crime in the instant case are more than 100 crores.”
As per the officials, more than 20 high-value properties that were not identified by the Karnataka Police’s Investigation and Detection Establishment (KPIDE) were found during the search proceedings being carried out by the ED so far.
The agency is probing the extent of the financial irregularities and identifying assets acquired using the laundered money.
The ED’s investigation is underway to ascertain the full extent of the fraud and trace the proceeds of crime under the provisions of the PMLA. (ANI)
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