Bengaluru, Feb 14 (LatestNewsX) The Directorate of Enforcement (ED), Bengaluru Zonal Office, has provisionally attached 11 immovable properties belonging to a couple, Rajesh V.R. and Nagavalli B.S., and their associated entities, with a total market value of Rs 16.95 crore, in connection with a cooperative society fraud case.
According to an official statement issued by the ED on Saturday, the attached properties were allegedly acquired using proceeds of crime generated through fraudulent activities linked to a cooperative society in Bengaluru.
The attached immovable assets include land parcels, plots and buildings located in Ramanagara, Mysuru and Bengaluru districts.
The ED initiated its investigation based on an FIR registered by the Subramanyapura police station in Bengaluru against Sirivaibhava Souharda Pattina Sahakari Niyamitha, its president Nagavalli B.S., its CEO Rajesh V.R., and others.
The FIR was filed following a complaint by the Managing Director of Karnataka State Federal Cooperative Limited, alleging that the society had sanctioned loans to entities owned or controlled by its president and CEO without obtaining proper surety. The loans were subsequently not repaid, resulting in losses to the cooperative and its depositors.
According to the ED, the accused allegedly misused their positions to divert public deposits for personal gain, causing wrongful losses to depositors.
During the investigation under the Prevention of Money Laundering Act (PMLA), the ED examined additional FIRs and charge sheets filed by police against the society and its key management personnel.
The investigation revealed that Rajesh V.R., CEO of the society, and Nagavalli B.S., its president, are a married couple who had incorporated the cooperative society in 2011.
The ED alleged that the accused, in collusion with others, diverted public deposits amounting to around Rs 65 crore and routed a substantial portion of the funds into their personal accounts and accounts of entities allegedly created to facilitate money laundering.
The diverted funds were allegedly used for purchasing immovable properties, investing in businesses and meeting personal expenses.
Further investigation in the case is underway.
mka/pgh
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