ED attaches over Rs 45-cr assets in co-op bank money laundering case

News Network
September 18, 2020

Bengaluru, Sept 18: Assets worth more than Rs 45 crore have been attached under the anti-money laundering law in connection with cooperative bank fraud in Karnataka, the Enforcement Directorate (ED) said on Friday.

The central probe agency said it issued a provisional order for attachment, under the Prevention of Money Laundering Act (PMLA), of movable assets to the tune of Rs 7.16 crore in the form of bank balances and fixed deposits belonging to the president, ex-vice president, ex-CEO and present CEO of Sri Guru Raghavendra Sahakara Bank Niyamitha and Sri Guru Sarvabhouma Credit Co-Operative Ltd and their associates.

Also attached are 29 immovable properties worth Rs 38.16 crore in the form of agricultural land, residential apartments and houses held in the name of K Ramakrishna, late T S Sathyanarayana, late M V Maiya, Santosh Kumar A and various other employees of Sri Guru Raghavendra Sahakara Bank Niyamitha and Sri Guru Sarvabhouma Credit Co-Operative Ltd, all residents of Bangalore and other places in the state.

The total value of the attached assets is Rs 45.32 crore, it said.

K Ramakrishna and late T S Sathyanarayana were president and vice president respectively of both Sri Guru Raghavendra Sahakara Bank Niyamitha and Sri Guru Sarvabhouma Credit Co-Operative Ltd.

Sri Guru Sarvabhouma Credit Co-Operative Ltd was established by K Ramakrishna in 2015 to avoid paying Tax Deducted at Source (TDS) which co-operative banks are required to pay under the Income Tax Act, the ED said in a statement.

"Between 2016-2019, crores of rupees was transferred from the society (Sri Guru Sarvabhouma Credit Co-operative Ltd) to the bank. President and M V Maiya were responsible for transferring of the amounts from the said society to the NPA accounts of the bank to reduce the NPA parameter," it said.

The ED filed a PMLA case on the basis of an FIR registered by Bengaluru police in February this year.

The police FIR was filed under various sections of the Karnataka Protection of Interest of Depositors in Financial Establishments (KPID) Act of 2004 against late V Maiya and others for embezzlement of more than Rs 1,500 crore collected from a large number of depositors, mostly senior citizens, through fixed deposits by promising them high rate of interest ranging from 12-16 per cent every year.

"The accused persons withdrew money from the bank by creating fictitious loan accounts and did not repay the money and cheated public at large. The proceeds of crime were found to be laundered in the name of many bank employees also. The president and his family members are absconding and ex-CEO of the bank has committed suicide," the probe agency said.

Investigation found that K Ramakrishna along with his wife and son, who is one of the Directors of Mukhyaprana Agro Farming and Research Info Pvt Ltd "layered the proceeds of crime" in the name of the company and also in the name of Sri Guru Sarvabhouma Credit Co-Operative Ltd by diverting funds from Sri Guru Raghavendra Sahakara Bank Niyamitha.

"The former CEO, late Maiya had also purchased immovable properties in his name by diverting funds from the bank and society. Employees of the bank and society were also involved in diverting funds by creating fictitious loan accounts and purchased properties in their name and in the name of their associates," the ED claimed.

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News Network
December 11,2024

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Udupi: The police have booked a case against the office-bearers of the Social Democratic Party of India (SDPI) for holding 'Chalo Belagavi - Ambedkar Jatha’ without permission and thereby disrupting the movement of vehicles on national highway at Hejmadi.

The SDPI held a jatha on December 10 from 2:30 pm to 3:30 pm. According to the police, the group had unlawfully gathered near the National Highway toll gate in Hejmadi. Despite instructions from the PSI to disperse, they failed to act and disrupted the traffic on the national highway.

The police have booked case against SDPI state secretary Riyaz Kadumbu, leaders Haneef Muloor, Nooruddin Mallaru, Firoz Kanchinadka, Thoufeeq Uchila, Majeed Uchila, Ibrahim Kanchinadka and others under Sections 57, 189(2), 189(3), 281, 285 and 190 of the BNS.

About 75 to 100 people commenced a procession --without obtaining permission -- in cars and two-wheelers shouting slogans. They caused inconvenience to the vehicles moving on the national highway, police said. 

The jatha, which was launched in Udupi on December 10, is expected to cover Dakshina Kannada, Chikkamagaluru, Shivamogga, Davanagere, Haveri, Koppal, Bagalkote, Hubballi, Dharwad and reach Belagavi on December 16.

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News Network
December 7,2024

Udupi, Dec 7: A tragic incident involving the death of a 38-year-old hotel worker in Manipal has been confirmed as a case of suicide, dispelling initial reports of murder. Udupi Superintendent of Police (SP) Dr. Arun Kumar clarified the matter after an investigation, including CCTV footage review, revealed the victim, Sridhara, took his own life in a shocking and rare manner.

Incident Overview
The lifeless body of Sridhara, a resident of Kasarakoda and hotel employee in Manipal, was discovered early Friday near Ananta Kalyana Nagara. Initially, it was believed he had been murdered, his throat reportedly slit with a beer bottle. However, a detailed inspection of the scene and CCTV evidence from a nearby shop confirmed that Sridhara inflicted the fatal injury on himself.

Footage revealed the chilling sequence: Sridhara was seen walking purposefully to the spot before suddenly using a beer bottle to slit his throat, collapsing moments later. The act left his throat almost entirely severed, and the beer bottle, along with an empty bag, was found near his body.

Suspected Drug Influence
Authorities suspect Sridhara may have been under the influence of narcotics at the time. A post-mortem examination was conducted at KMC Manipal to uncover any potential contributing factors.

Public Concern and Investigation Status
Although the investigation has ruled out foul play, local residents have urged authorities to probe further to ensure no external involvement was overlooked. The police, while confident in their findings, have withheld the CCTV footage from public release due to the sensitive nature of the case and ongoing inquiries.

“This was a tragic and rare method of suicide, confirmed through thorough investigation and verified CCTV evidence,” SP Dr. Arun Kumar stated, urging the public to avoid speculation.

The incident has left the community in shock, sparking discussions around mental health awareness and the impact of substance abuse. Authorities continue to investigate further to close the case conclusively.

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News Network
December 10,2024

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Bengaluru: Karnataka has declared a holiday for state government offices, schools and colleges on Wednesday, December 11, in the wake of a state funeral for former chief minister S M Krishna, who passed away in Bengaluru on Tuesday.

The last rites of Krishna, 92, will be held at his native village of Somanahalli in Mandya's Maddur taluk.

A government order stated that the holiday would apply to private aided educational institutions too.

Besides, the government has declared three days of mourning (December 10-12), during which no public entertainment programmes would take place, while the national flag would fly at half-mast.

S M Krishna passed away at his residence on December 10, 2024. The 92-year-old veteran politician was ailing for quite some time, a family source said.

A charismatic leader with a modern outlook, he not only laid a strong foundation for the growth of IT and BT industries in Karnataka but also managed to get them onboard with the government to build “Brand Bengaluru” at the international level.

He held several prominent positions throughout his career as External Affairs Minister, Maharashtra Governor, Chief Minister of Karnataka, Speaker of Karnataka Legislative Assembly and Minister in the Karnataka government.

Although known for his tech savviness, flamboyancy, style and the Western outlook, the Congressman-turned-BJP senior leader was a hardcore Bengalorean who loved the city’s trees and flowers. SMK also had a love for tennis. Even when he was Chief Minister, he would visit the tennis court to play the game two to three times a week. 

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