Bengaluru, Sep 8 The Enforcement Directorate (ED) investigation into the Kamalakshi Vividodhesha Sahakara Sangha Niyamitha Cooperative Society scam reported from Udupi district of Karnataka has proved the misappropriation of Rs 32.73 crore deposits by the office bearers.
According to the official statement released on Monday: "The Directorate of Enforcement (ED), Mangaluru has filed Prosecution Complaint before Hon’ble III Additional District and Sessions Judge, Mangalore (Special Court PMLA), on Sept 4 against Kamalakshi Vividodhesha Sahakara Sangha Niyamitha, B V Laxminarayana, Asha Rao and Radhika, under the provisions of the Prevention of Money Laundering Act (PMLA), 2002, in connection with the Cooperative Society Scam of Kamalakshi Vividodhesha Sahakara Sangha Niyamitha, Udupi."
ED initiated investigation on the basis multiple FIRs registered by Udupi CEN Crime Police Station, Karnataka, under various sections of IPC 1860, against B V Laxminarayana, Asha Rao and Radhika and others.
ED investigation revealed that the main accused B. V. Laxminarayana, the President of the Cooperative Society, with the aid of Asha Rao, Manager of the Cooperative Society and Radhika, wife of Lakshminarayana and Director of the Cooperative Society, had mobilised funds from the depositors to the tune of Rs 32.73 crore (Rs 32,73,98,448), in the name of Kamalakshi Vividodhesha Sahakara Sangha Niyamitha, Udupi, and Ganapathi Investments, by promising high interest rates up to 15 per cent per annum and cheated them by defaulting on promised interest and capital repayments.
The investigation further revealed that the funds mobilised from the depositors were subsequently utilized by the main accused Laxminarayana for the purchase of immovable properties in his name and in the name of his wife Radhika, which were subjected to attachment by Competent Authority of Karnataka Protection of Interest of Depositors in Financial Establishments Act (KPIDFE), 2004, the statement by the ED stated.
Further investigation is under progress.
Earlier, on July 17, the ED had carried out searches at over 15 locations in and around Bengaluru in connection with a multi-crore cheating case involving three cooperative banks: Shushruti Souharda Bank, Shruthi Souharda Bank, and Shree Lakshmi Souharda Bank.
The raids targeted premises linked to the banks’ promoters and their family members, officials familiar with the investigation. According to the ED, more than Rs 100 crore was allegedly swindled from over 15,000 depositors who were lured with the promise of unusually high interest rates. Investigators say the accused used these deposits to extend unsecured loans to close associates, many of which later turned into non-performing assets.
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