Did ED Attach Rs 16.95 Cr Assets in Bengaluru Cooperative Society Fraud?
Synopsis
The ED has provisionally attached properties worth Rs 16.95 crore linked to a couple in a cooperative society fraud case in Bengaluru. Allegations include misuse of public deposits and fraudulent loan practices, raising significant concerns about financial governance.
Key Takeaways
ED's action against cooperative society fraud.
Allegations of misuse of public deposits .
Investigation based on FIR from Subramanyapura police .
Couple allegedly diverted Rs 65 crore .
Further inquiries are ongoing .
Bengaluru, Feb 14 (NationPress) 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., along with their associated entities, holding a total market value of Rs 16.95 crore, as part of an investigation into a cooperative society fraud case.
As stated in an official release from the ED on Saturday, the attached properties were purportedly obtained through proceeds of crime arising from fraudulent activities linked to a cooperative society in Bengaluru.
The properties include land parcels, plots, and buildings situated in Ramanagara, Mysuru, and Bengaluru districts.
The ED commenced its investigation following an FIR filed by the Subramanyapura police in Bengaluru against Sirivaibhava Souharda Pattina Sahakari Niyamitha, its president Nagavalli B.S., CEO Rajesh V.R., and others.
The FIR was lodged after a complaint from the Managing Director of Karnataka State Federal Cooperative Limited, claiming that the society had issued loans to entities owned or overseen by its president and CEO without adequate surety. These loans were later not repaid, leading to losses for the cooperative and its depositors.
The ED alleges that the accused misused their positions to redirect public deposits for personal benefits, inflicting wrongful losses on depositors.
During the investigation under the Prevention of Money Laundering Act (PMLA), the ED reviewed additional FIRs and charge sheets filed against the society and its key management personnel.
The investigation uncovered that Rajesh V.R., the society's CEO, and Nagavalli B.S., its president, are a married couple who established the cooperative society in 2011.
The ED claims that the accused, in collusion with others, diverted public deposits totalling approximately Rs 65 crore and funneled a significant portion of the funds into their personal accounts and accounts of entities allegedly created to facilitate money laundering.
The misappropriated funds were reportedly utilized for acquiring immovable properties, investing in businesses, and covering personal expenses.
Further inquiries into the case are ongoing.
Point of View
It is crucial to recognize the implications of this significant fraud case. The ED's actions highlight a pressing issue regarding financial oversight in cooperative societies. This investigation serves as a reminder of the importance of vigilance in protecting public interests and ensuring accountability.
NationPress
12 May 2026
Frequently Asked Questions
What is the value of the assets attached by the ED?
The ED has provisionally attached assets valued at Rs 16.95 crore.
Who are the individuals involved in this case?
The individuals involved are Rajesh V.R. and Nagavalli B.S., who are a married couple and key figures in the cooperative society.
What prompted the ED's investigation?
The investigation was initiated based on an FIR lodged by the Subramanyapura police against the cooperative society, alleging fraudulent loan practices.
What laws is the ED using to conduct this investigation?
The ED is conducting the investigation under the Prevention of Money Laundering Act (PMLA).
What were the funds allegedly used for?
The allegedly misappropriated funds were used for buying properties, investing in businesses, and covering personal expenses.
