ED Attaches Properties Worth Rs 3.62 Crore in Bengaluru Bank Fraud Case
In a major crackdown on financial fraud, the Enforcement Directorate (ED) in Bengaluru has provisionally attached two immovable properties valued at around Rs 3.62 crore. These properties belong to N. Srinivasa Murthy, the former Chairman of Shushruti Souharda Sahakara Bank Niyamitha, and his close relative Rathnamma. The action falls under the Prevention of Money Laundering Act (PMLA), 2002, and targets a cheating scandal that duped the bank’s customers.
The ED launched its probe based on multiple FIRs filed by Karnataka Police. Reports revealed that the bank failed to pay interest or return principal amounts to customers on their fixed deposits and savings accounts. Instead, Chairman Srinivasa Murthy, along with the bank’s directors and employees, allegedly colluded to siphon off customer deposits, leaving depositors high and dry.
Digging deeper into the money laundering case, the ED uncovered how Srinivasa Murthy, his wife Dharini Devi, and daughter Mokshatara – who served as Chairman, Director, and Functional Director respectively – diverted funds from the bank. They set up other financial outfits like Shruti Souharda Credit Co-operative Society and Shree Lakshmi Mahila Co-Op Society, run by Rathnamma, to lure more deposits from unsuspecting people, only to cheat them again.
The investigation also exposed shady loan practices. Srinivasa Murthy and his associates approved loans to close contacts without proper checks or collateral. They then used the loan money to buy properties in their own names, turning those accounts into non-performing assets (NPAs) and causing huge losses.
This Bengaluru bank fraud case highlights the risks of unregulated financial entities and how they exploit everyday savers. The ED says the probe continues, with more details expected to emerge. Stay tuned for updates on this ongoing money laundering investigation.
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