ED Seizes Rs 16 Crore Assets in Major Bengaluru Cooperative Society Fraud Investigation
In a significant development, officials from the Enforcement Directorate's Bengaluru zonal unit executed a major property attachment operation on Saturday. The action targeted assets valued at approximately Rs 16 crore belonging to Rajesh VR and his wife Nagavalli BS, who hold the positions of Chief Executive Officer and President, respectively, at Srivaibhava Souharda Pattina Sahakari Niyamitha.
Origins of the Case: A 2022 Police Complaint
The investigation traces its roots back to June 2022, when the Managing Director of State Souharda Federal Cooperative Ltd filed a formal complaint with the Subramanyapura police station. This complaint specifically accused the board members of Srivaibhava Souharda Pattina Sahakari Niyamitha of orchestrating a sophisticated financial deception.
The core allegation centered on the board members allegedly defrauding investors by approving substantial loans to entities controlled by Rajesh and Nagavalli. Crucially, these loans were reportedly sanctioned without obtaining adequate collateral or security, leaving the cooperative society exposed to massive financial risk. The entities that received these loans subsequently defaulted on their repayment obligations, triggering the initial investigation.
ED's Findings: Rs 65 Crore Diverted Through Complex Web
The Enforcement Directorate's probe uncovered a complex financial scheme. According to the agency's statement, Rajesh and Nagavalli diverted public deposits totaling a staggering Rs 65 crore, thereby generating what is classified as "proceeds of crime" under anti-money laundering laws.
A substantial portion of these illicit funds was allegedly funneled through multiple channels:
- The couple's personal bank accounts
- Accounts belonging to various fictitious entities
The ED asserts these shell entities were specifically created to facilitate the laundering process, obscuring the trail of the diverted funds.
Nature of the Attached Properties
The properties seized under the Prevention of Money Laundering Act (PMLA) are geographically diverse, located across key districts in Karnataka. The attached assets include:
- Land parcels
- Residential and commercial plots
- Buildings and structures
These properties are situated in Ramanagara, Mysuru, and Bengaluru, indicating the alleged widespread use of the laundered money for real estate acquisition.
This attachment represents a critical step in the ED's ongoing efforts to recover the proceeds of the alleged fraud and hold the accused accountable under the stringent provisions of the PMLA. The case highlights continued regulatory scrutiny over cooperative financial institutions in the region.
