Bengaluru: A man has been arrested in connection with the ongoing money laundering probe against a Bengaluru-based co-operative bank for allegedly misappropriating public funds of over Rs 1,000 crore, the Enforcement Directorate said on Thursday.
Rajesh VR has been taken into custody in connection with the allegation of embezzlement and misappropriation of depositors’ money of Sri Guru Raghavendra Co-operative Bank. The ED said in a statement that he was the main beneficiary of the funds siphoned off from the bank with the connivance of the bank’s management.
The agency had arrested K Ramakrishna, chairman of this co-operative bank, in February last year.
Speaking about the role of Rajesh VR, ED said, ‘According to the RBI audit report, he has taken a loan of Rs .40 crore from the bank and has not repaid it’.
During investigation it was noticed that there are many FIRs against Rajesh VR and his wife in other co-operative banks/societies for defrauding the public. ED alleged that they are habitual criminals.
The ED registered a case under criminal sections of the Prevention of Money Laundering Act (PMLA) in February 2020.
The investigation revealed that the money was misappropriated by the bank employees by promising them interest rates higher than the prevailing market rates.
Fake accounts were created and money was given to various persons including bank staff without obtaining adequate security for the loan.
The agency had earlier seized property worth Rs 45 crore in this case.
ED arrested Rajesh VR in the case of Sri Guru Raghavendra Sahakara Bank Niyamitha under the PMLA in bank fraud case. The Principal City Civil and Sessions Judge, Bangalore has granted 3 days’ ED custody.
— ED (@dir_ed) February 23, 2023
