Cooperative Bank scam: ED attaches properties worth Rs 45.32 crore in Karnataka
New Delhi, Sep 19: The Enforcement Directorate has attached assets worth Rs 45.32 crore in connection with a cooperative bank fraud case.
The attachments were made under the provisions of the Prevention of Money Laundering Act 2002.
The attached movable assets to the tune of Rs. 7.16 crores are in the form of bank balances and fixed Deposits belonging to President, Ex-Vice President, Ex CEO and present CEO of Sri Guru Raghavendra Sahakara Bank Niyamitha and Sri Guru Sarvabhouma Credit Co-Operative Ltd. and their associates.
The attached 29 immovable properties totalling to Rs. 38.16 crores are in the form of agricultural land, residential apartments, houses held in the name of K Ramakrishna, late T S Sathyanarayana, late M V Maiya, Santosh Kumar A and various other employees of Sri Guru Raghavendra Sahakara Bank Niyamitha and Sri Guru Sarvabhouma Credit Co-Operative Ltd., all residents of Bangalore and others.
K Ramakrishna and late T S Sathyanarayana were President and Vice President respectively of both Sri Guru RaghavendraSahakara Bank Niyamitha and Sri Guru Sarvabhouma Credit Co-Operative Ltd. Sri Guru Sarvabhouma Credit Co-Operative Ltd.
The ED said that these banks were established in 2015 with an intention of avoiding payment of TDS.
Co-operative banks are required to pay TDS under Income Tax Act. Between 2016 to 2019, crores of rupees were transferred from the society (Sri Guru Sarvabhouma Credit Co-operative Ltd.) to the bank.
President and M V Maiya were responsible for transferring the amounts from the said society to the NPA accounts of the bank to reduce the NPA parameter. The ED initiated the probe based on a complaint filed with the Bengaluru police. The ED found the accused persons had embezzled more than Rs 1,500 crore collected from a large number of depositors.
The accused persons withdrew money from the bank by creating fictitious loan accounts and did not repay the money and committed breach of trust and cheated public at large.
The proceeds of crime were found to be laundered in the name of many bank employees also. The President and his family members are absconding and Ex- CEO of the bank has committed suicide.
Investigation under PMLA also revealed that K Ramakrishna, President, along with his wife and son, who is one of the Directors of M/s Mukhyaprana Agro Farming & Research Info Pvt. Ltd., layered the proceeds of crime in the name of company and also in the name of Sri Guru Sarvabhouma Credit Co-Operative Ltd. by diverting funds from Sri Guru Raghavendra Sahakara Bank Niyamitha.
The former CEO late M V Maiya had also purchased immovable properties in his name by diverting funds from the bank and society. Employees of the bank and society were also involved in diverting funds by creating fictitious loan accounts and purchased properties in their name and in the name of their associates. Investigation conducted so far lead to identification of the proceeds of crime in the form of movable and immovable properties, which have been provisionally attached under PMLA.