Bengaluru (Karnataka) [India], July 17 (HBTV): The Enforcement Directorate (ED) on Wednesday launched searches at more than 15 locations in and around Bengaluru in connection with an alleged multi-crore cheating case involving three cooperative banks — Shushruti Souharda Bank, Shruthi Souharda Bank, and Shree Lakshmi Souharda Bank.

The searches are being conducted at premises linked to the promoters of the banks and their family members, officials privy to the development told ANI.

The action follows allegations that over INR 100 crore was cheated from more than 15,000 depositors, officials said.

According to investigators, depositors were lured with unusually high interest promises, drawing large sums of money under false pretences. Subsequent ED findings indicate that the funds were diverted through unsecured loans extended to associates.

‘Most of these loans turned into non-performing assets (NPAs), and the money was laundered and used to purchase properties,’ an official said, pointing to suspected violations under the Prevention of Money Laundering Act (PMLA), 2002.

ED’s Karnataka wing began the raids early Wednesday. ‘The proceeds of crime in the case are more than INR 100 crore,’ an official said.

Officials added that more than 20 high-value properties not previously identified by the Karnataka Police’s Investigation and Detection Establishment (KPIDE) have been traced so far during the searches.

The agency is examining the scale of the alleged financial irregularities and working to identify assets acquired using the laundered funds. The investigation continues to determine the full extent of the fraud and trace the proceeds of crime under PMLA provisions.

(ANI)