ED Seizes Properties Worth ₹85.88 Crore in ₹168 Crore Fraud Case
The Enforcement Directorate (ED) has made a significant move in its investigation into an alleged ₹168 crore fraud at the Dnyanraddha Multistate Co-operative Society Ltd (DMCSL). The Mumbai zonal unit of the ED has provisionally attached immovable assets worth ₹85.88 crore as part of its probe. These assets include residential flats, commercial office spaces, and plots located in Mumbai, Pune, Aurangabad, and Beed districts of Maharashtra.
The ED’s investigation has revealed that the accused individuals behind the fraud had allegedly used the proceeds of their criminal activities, which involved duping investors, to accumulate personal assets. The DMCSL, managed and controlled by individuals such as Suresh Kute and Yashvant Kulkarni, is at the center of the probe. The ED initiated its investigation based on multiple First Information Reports (FIRs) filed between May and July 2024 by various police stations in Maharashtra.
Investigation Unveils Deceptive Investment Schemes
According to sources within the ED, the DMCSL had introduced several deposit schemes that promised investors interest rates ranging from 12 to 14 per cent. Additionally, the society offered various loan products, including personal, simple, salary, term, gold, and Fixed Deposit Receipt loans. The ED’s investigation found that the proceeds of the fraudulent activities were laundered by Suresh Kute and others to acquire various immovable assets for their personal benefit.
The ED discovered that Kute and his associates had enticed unsuspecting investors to deposit money with DMCSL by offering high returns. However, investors reportedly only received partial payments or no payment at all upon the maturity of their deposits, effectively embezzling their funds for personal gain. In August and September, the ED conducted search operations, freezing movable assets worth ₹9.2 crore and seizing various incriminating documents and digital devices, bringing the total value of assets seized, frozen, or attached in the case to approximately ₹95.1 crore.
Further Revelations: Fabricated Investment Documents
Further investigation by the ED uncovered that some of the accused had fabricated documents presenting a structured investment scheme promising ₹10,000 crore in funding over five years from an overseas firm, Minventa Research, based in Luxembourg, through the securitization of a business group’s assets. These fraudulent documents were distributed among DMCSL investors and submitted to various judicial authorities in an attempt to mislead them.
The ED’s actions in seizing properties worth ₹85.88 crore are a significant step in unraveling the complex web of financial fraud perpetrated by the accused individuals associated with the DMCSL. The agency’s relentless pursuit of justice in financial crimes serves as a deterrent to others who may seek to exploit unsuspecting investors for personal gain.
As the investigation continues, the ED remains committed to uncovering the full extent of the fraud at DMCSL and holding those responsible accountable for their actions. The seizure of assets worth ₹85.88 crore sends a clear message that financial crimes will not go unpunished in India, and those who engage in fraudulent activities will face the full force of the law.
