The Enforcement Directorate’s (ED) Mumbai zonal office has taken action in a money-laundering investigation involving a cooperative credit society. They have provisionally attached assets worth ₹333.82 crore, including land, buildings, and machinery of two dairy-based companies in Satara and Ahmednagar. This brings the total value of seizures, freezing, and attachments in the case to ₹1,433.48 crore.
The investigation revealed that the management of the Dnyanradha Multistate Co-operative Credit Society Ltd (DMCSL) allegedly misused funds by diverting ₹2,467.89 crore, considered proceeds of crime, as loans to various companies. The society, controlled by individuals like Suresh Kute and Yashvant Kulkarni, attracted over four lakh investors with deposit schemes promising 12 to 14 percent interest rates. However, many investors did not receive full payments upon maturity of their deposits.
It was found that Kute and others conspired to divert funds as loans to companies within The Kute Group, leading to embezzlement and personal gains. The ED official stated that the funds were siphoned off through various accounts or in cash, used for investments, property purchases, and personal expenses.
Prior to this, the ED had conducted searches and frozen movable assets worth approximately ₹10.99 crore. Provisional attachment orders were issued for assets worth ₹85.88 crore and ₹1,002.79 crore earlier. The investigation stemmed from cases filed between May and July under the Indian Penal Code and the Maharashtra Protection of Interest of Depositors Act, related to fraud against investors by DMCSL.
The latest development showcases the ED’s efforts to crack down on financial crimes and protect investors from fraudulent schemes. It serves as a warning to those who engage in money laundering and misuse of funds, highlighting the consequences of such actions. The investigation is ongoing, and further actions may be taken to ensure justice is served and assets are recovered for the affected investors.
