The Directorate of Enforcement (ED) has attached assets worth Rs. 45.32 crore of the Sri Guru Raghavendra Sahakara Bank and the Sri Guru Sarvabhouma Credit Co-operative under the Prevention of Money Laundering Act, 2002. These include financial assets of Rs 7.16 crore and immovable properties worth Rs 38.16 crore in the names of various officials and employees of the bank and the society.
According to the ED, from 2016 to 2019, crores of rupees were transferred from the society to the bank by K Ramakrishna and MV Maiya so as to reduce the size of the bank’s NPAs.
An FIR was registered by the Banaswadi police station in February under sections 420, 120B, 409, 406 and 34 of the IPC as well as section 9 of the Karnataka Protection of Interest of Depositors in Financial Establishments (KPID) Act, 2004 against MV Maiya and others for embezzling more than Rs 1,500 crore collected from depositors by promising them high rates of interest.
According to the ED, K Ramakrishna, along with his wife and son, who is one of the directors of Mukhyaprana Agro Farming & Research Info Pvt. Ltd., layered the proceeds of crime in the name of the company and also in the name of the co-op society by diverting funds from the bank.
The former CEO, the late M V Maiya, also allegedly purchased immovable properties by diverting funds from the bank and the co-op society. Employees of the bank and the co-op society were also allegedly involved in fraudulently diverting funds.