ED attaches immovable assets worth ₹85.88 crore in ₹168 crore fraud case

Mumbai: The Enforcement Directorate (ED), India's financial crime investigation agency, has provisionally attached immovable assets worth ₹85.88 crore as part of its probe into an alleged ₹168 crore fraud at the Dnyanraddha Multistate Co-operative Society Ltd (DMCSL).

The Mumbai zonal unit of the ED seized residential flats, commercial office spaces and plots located in Mumbai, Pune, Aurangabad and Beed districts of Maharashtra on Tuesday. The agency's investigation revealed that the accused had allegedly used the proceeds of crime, generated from duping investors, to amass personal assets.

The DMCSL, which was managed and controlled by individuals including Suresh Kute and Yashvant Kulkarni, is at the centre of the probe. The ED initiated its investigation based on multiple First Information Reports (FIRs) registered between May and July 2024 by various police stations in Maharashtra. The FIRs invoked sections of the Indian Penal Code and the Maharashtra Protection of Interest of Depositors Act.

According to ED sources, the DMCSL had introduced multiple deposit schemes, promising interest rates ranging from 12 to 14 per cent. The society also offered various loan products, including personal, simple, salary, term, gold and Fixed Deposit Receipt loans.

"ED investigation revealed that the proceeds of crime generated by cheating investors of DMCSL were laundered by Suresh Kute and others for their personal benefits for acquiring of various immovable assets," an ED source said.

The agency's probe uncovered that Kute and his associates had allegedly enticed unsuspecting investors to deposit money with DMCSL by promising high returns. However, investors reportedly received only partial payments or no payment at all upon 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. The total value of assets seized, frozen or attached in the case now stands at approximately ₹95.1 crore.

Further investigation by the ED revealed that some accused had allegedly fabricated documents projecting a structured investment promising ₹10,000 crore in funding over five years from an overseas firm, Minventa Research, Luxembourg, through the securitisation of a business group's assets. These fraudulent documents were allegedly distributed among DMCSL investors and submitted to various judicial authorities in an attempt to mislead them.