ED files plaint against 24 in Rs 2,467 crore credit society fraud case
New Delhi, Mar 13, 2025
During the PMLA investigation, ED found that Suresh Kute and others lured more than four lakh investors to deposit money with DMCSL by promising higher returns
The Enforcement Directorate (ED) on Thursday said that it has filed a prosecution complaint before the Special Court (PMLA), Mumbai, on March 6, in the case of M/s Dnyanradha Multistate Co-operative Credit Society (DMCCSL) and others against 24 accused, including Suresh Kute, DMCCSL, and others, in connection with fraud committed by floating various deposit schemes that promised interest ranging from 12 per cent to 14 per cent. However, no payments or only partial payments were made to investors when the deposits matured, resulting in them being cheated.
During the Prevention of Money Laundering Act (PMLA) investigation, the ED found that Kute and others lured more than 400,000 investors into depositing money with DMCCSL by promising high returns.
The investigation by the law enforcement and economic intelligence agency revealed that the funds of DMCCSL were embezzled by the management of the society. Kute and others allegedly hatched a criminal conspiracy to illegally and fraudulently divert funds amounting to ₹2,467 crore in the guise of loans to various companies of The Kute Group, a group of companies beneficially owned by Kute and his family.
“Upon the disbursement of these fraudulent loan amounts, the funds were siphoned off by them through several accounts of entities under The Kute Group or directly in the form of cash. The funds received from the society were further utilised for their own personal benefits, including investments in new businesses, property purchases, and personal expenses,” the ED said in its statement.
Earlier, the ED conducted search operations in this case on August 8, 2024, September 20, 2024, and October 14, 2024.
According to the ED, during these search operations, moveable assets worth roughly ₹11 crore were frozen or seized. The ED also issued provisional attachment orders for assets worth ₹85.88 crore, ₹1,002.79 crore, and ₹333.82 crore. The total value of seized, frozen, and attached assets in this case stands at about ₹1,433.48 crore.
In a separate case, the ED’s Aizawl sub-zonal office conducted search operations under the provisions of the PMLA, 2002, on March 12 at nine premises across Assam and Mizoram in connection with a vehicle loan fraud case in which Mahindra & Mahindra Financial Services (MMFSL) was the victim.
According to the ED, first information reports and charge sheets revealed that car dealers, MMFSL employees, and other accused persons conspired to illegally and fraudulently siphon funds by defrauding MMFSL. They allegedly created fake customer profiles using fabricated documents such as voter ID cards, Aadhaar cards, and income certificates, and presented fictitious individuals as loan applicants to obtain fraudulent loans from MMFSL.
[The Business Standard]
