What Are the Details of the Cooperative Bank Fraud Involving Rs 3.62 Crore?
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Synopsis
The Enforcement Directorate has attached properties linked to a cooperative bank fraud case in Bengaluru, involving significant sums of money and allegations of misappropriation and cheating of depositors. This incident sheds light on deeper issues within cooperative banking systems.
Key Takeaways
- Rs 3.62 crore worth of properties attached.
- Involvement of N. Srinivasa Murthy and his family.
- Allegations include fraud against bank customers.
- Investigation triggered by multiple FIRs.
- Continuing investigation under PMLA.
Bengaluru, Sep 11 (NationPress) The Enforcement Directorate (ED) in Bengaluru has provisionally attached two immovable properties valued at approximately Rs 3.62 crore. These properties belong to N. Srinivasa Murthy, the former Chairman of Shushruti Souharda Sahakara Bank Niyamitha, and Rathnamma, a close relative of Murthy, as part of an investigation under the Prevention of Money Laundering Act (PMLA), 2002. This action is linked to allegations of fraud against account holders of the bank, as stated by officials on Thursday.
The ED's investigation was triggered by numerous FIRs filed by the Karnataka Police, which claimed that the bank failed to pay interest or return the principal amounts to its customers who had fixed deposits or savings accounts. The statement mentioned that Murthy and the bank's directors allegedly colluded with employees to misappropriate customer deposits, thereby defrauding them.
As the investigation progressed under the PMLA, it became evident that Murthy, along with his wife Dharini Devi and their daughter Mokshatara, who served as Chairman, Director, and Functional Director of the bank respectively, played significant roles in misdirecting funds.
Furthermore, the investigation uncovered that Murthy established various financial entities such as Shruti Souharda Credit Co-operative Society and Shree Lakshmi Mahila Co-Op Society, both of which were managed by Rathnamma. These entities allegedly collected deposits from unsuspecting depositors, only to betray their trust. Additionally, it was discovered that loans were sanctioned in the names of acquaintances without adhering to proper protocols, often lacking collateral. Properties were registered in their names using loan amounts, which subsequently turned into non-performing assets (NPA).
Ongoing investigations are expected to reveal more details.
Point of View
This incident highlights the vulnerabilities within cooperative banking systems and raises concerns about regulatory oversight. As the investigation unfolds, it will be crucial to ensure accountability and protect depositor interests.
NationPress
21/09/2025
Frequently Asked Questions
What is the amount involved in the cooperative bank fraud?
The amount involved in the cooperative bank fraud is approximately Rs 3.62 crore.
Who is N. Srinivasa Murthy?
N. Srinivasa Murthy is the former Chairman of Shushruti Souharda Sahakara Bank Niyamitha.
Under which act was the property attached?
The property was attached under the Prevention of Money Laundering Act (PMLA), 2002.
What were the allegations against the bank?
The allegations include failure to pay interest and return principal amounts to customers, as well as misappropriation of customer deposits.
Is the investigation ongoing?
Yes, the investigation by the Enforcement Directorate is still ongoing.
