ED attaches 1,002 cr assets in Dnyanraddha case

MUMBAI: The Enforcement Directorate (ED) has attached provisionally immovable assets, including plots of land and buildings worth ₹1,002.79 crore in a money-laundering investigation relating to the alleged fraud at the Dnyanraddha Multistate Co-operative Credit Society Limited (DMCSL). The attached assets comprised over 100 acres of land, including industrial plots.

The credit society, which has branches across Maharashtra, is accused of defrauding depositors of crores of rupees. The ED found that DMCSL’s funds worth ₹2,318.45 crore had been allegedly embezzled and illegally diverted by a group of accused persons in the case, whose roles are being investigated by the agency.

The assets attached on Wednesday are in Mumbai, and in Beed, Aurangabad and Jalna districts. In earlier search operations, the ED had frozen or seized movable assets worth ₹9.2 crore. It had also issued provisionally attached assets worth ₹85.88 crore in September. Assets worth a total ₹1,097.87 crore have been seized, frozen or attached, so far.

The ED’s investigation is based on multiple cases registered between May and July by police stations across the state, under the Indian Penal Code and the Maharashtra Protection of Interest of Depositors Act. One of the main accused is Suresh Kute, who managed and controlled DMCSL, along with Yashvant Kulkarni and others.

The society had floated various deposit schemes and claimed to provide attractive interest on these deposits, from 12% to 14%. The ED’s probe revealed that Kute and others had allegedly lured more than 4 lakh investors to deposit money with DMCSL. The society also offered loans, including personal loans, gold loans and Fixed Deposit Receipt loans, among others. However, when the deposits matured, investors received only partial payments and, in many instances, no payment.

The funds had instead been allegedly embezzled by its management. Kute and his associates diverted ₹2,318.45 crore under the guise of loans to various companies of the Kute group of companies, owned by Kute and his wife, Archana Kute, according to ED sources. Upon disbursement of such fraudulent loans, the funds were then siphoned by the accused through several bank accounts of the entities of the Kute Group or directly in the form of cash. The funds received from DMCSL were further deployed allegedly for personal benefit, like investment in new businesses, purchase of property and personal expenses by the accused.