ED Uncovers ₹100 Cr Co-op Bank Scam, Raids 15 Locations in B’luru
In a major crackdown, the Enforcement Directorate (ED) conducted raids at more than 15 locations in and around Bengaluru on Thursday, investigating an alleged ₹100-crore financial scam involving three co-operative banks. The searches focused on the founders and relatives linked to Shushruti Souhardha Bank, Shruthi Souharda Bank, and Shree Lakshmi Souharda Bank.
According to sources, the ED had received complaints against the three co-operative banks, alleging that they had been involved in a massive scam, resulting in the loss of lakhs of rupees to depositors. The banks, which were established with the aim of providing financial services to the rural population, had instead been used as a means to siphon off funds and engage in illegal activities.
The ED raids, which began at 6 am on Thursday, targeted the offices and residences of the founders and relatives of the three banks. The agency seized documents, records, and other materials related to the banks’ operations, as well as electronic devices and other assets.
Sources close to the investigation revealed that the ED had been monitoring the banks’ activities for several months, gathering evidence of irregularities and illegal transactions. The agency had also received complaints from depositors who had lost large sums of money after investing in the banks.
The ED has registered a case under the Prevention of Money Laundering Act (PMLA) and the Foreign Exchange Management Act (FEMA) against the founders and officials of the three banks. The agency is expected to continue its investigations and may register additional cases against those found involved in the scam.
The raids have sent shockwaves through the banking sector in Karnataka, with many depositors and investors expressing concerns about the safety of their funds. The state government has promised to take strict action against those found guilty of the scam, and has assured depositors that their funds will be protected.
The Shushruti Souhardha Bank, Shruthi Souharda Bank, and Shree Lakshmi Souharda Bank are all registered as co-operative banks, which are exempt from many of the regulations and restrictions that apply to commercial banks. However, they are still subject to oversight and regulation by the Reserve Bank of India (RBI) and the National Co-operative Development Corporation (NCDC).
Co-operative banks are designed to provide credit and other financial services to the rural population, who often lack access to traditional banking services. However, some co-operative banks have been accused of engaging in illegal activities, such as money laundering and fraud, to make a quick buck.
The ED’s crackdown on the three co-operative banks is seen as a major victory for the agency, which has been working to root out financial fraud and corruption in the country. The agency has been instrumental in uncovering several high-profile scams and frauds in recent years, including the Vijay Mallya loan scam and the Nirav Modi bank fraud.
The ED’s investigation into the Shushruti Souhardha Bank, Shruthi Souharda Bank, and Shree Lakshmi Souharda Bank is ongoing, and it is expected to take several months to complete. The agency has promised to take stern action against those found guilty of the scam, and to recover the losses suffered by depositors.
As the investigation continues, it is clear that the ED’s raids have sent a strong message to those involved in fraudulent activities. The agency’s actions have also sent a reassuring message to depositors and investors, who are now more confident that their funds are safe and that those responsible for the scam will be held accountable.
