Enforcement Directorate to Present Credit Society Official in Mumbai Court Today
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New Delhi, Jan 10 (NationPress) After uncovering new assets acquired through proceeds of crime, the Enforcement Directorate (ED) is anticipated to present businessman Suresh Kute, who was arrested for Rs 2,400 crore in money laundering and deceiving four lakh small investors, in a special court in Mumbai on Friday.
The ED’s Mumbai Zonal Office took Kute into custody on January 7 under the Prevention of Money Laundering Act (PMLA), 2002, in connection with the misappropriation of funds from Dnyanradha Multistate Co-operative Credit Society Ltd (DMCSL).
He was subsequently brought before the Special Court (PMLA) in Mumbai, which approved Kute's detention by the ED until Friday.
The ED's investigation commenced following multiple FIRs filed between May and July 2024 by various police stations across Maharashtra, citing violations of the IPC, 1860, and the Maharashtra Protection of Interest of Depositors (In Financial Establishments) Act, 1999, regarding the fraudulent activities directed at investors by Kute and his associates.
The central agency noted in its complaint that DMCSL was overseen by Suresh Dnyanobarao Kute, Yashvant V Kulkarni, and others.
This co-operative credit society launched several deposit schemes, promising interest rates ranging from 12 to 14 percent.
During the probe, it was revealed that Kute and his associates enticed over four lakh unsuspecting investors to deposit their money with DMCSL by guaranteeing substantial returns.
According to the ED, investors were either not compensated or received only partial payments upon the maturity of their deposits, leading to widespread fraud.
The investigation disclosed that DMCSL's funds were misappropriated by its management, where Kute and others conspired to illegally redirect funds totaling nearly Rs 2,470 crore under the pretense of loans to various companies within the Kute Group (a collection of companies owned by Suresh Kute and his spouse Archana Kute).
Upon the issuance of these fraudulent loans, the funds were misappropriated through multiple accounts associated with the Kute Group or directly withdrawn as cash.
Funds collected from the society were then utilized for personal gains, including investments in new ventures, property acquisitions, and personal expenditures.
