Logo of the Enforcement Directorate (ED). (File Photo | PTI)
Karnataka

ED raids in Rs 100-crore 'cheating' case against promoters of Bengaluru bank

The allegations against the promoters pertain to cheating of over Rs 100 crore from more than 15,000 depositors by luring them to make deposits with high interest.

PTI

BENGALURU: The Enforcement Directorate (ED) on Thursday raided multiple locations in and around Bengaluru as part of a money laundering probe linked to an alleged fraud of Rs 100 crore with more than 15,000 depositors by the promoters of a local bank, officials sources said.

The probe pertains to Shushruti Souhardha Bank, Shruthi Souharda Bank and Shree Lakshmi Souharda Bank and their promoters, including N Srinivas Murthy and his family members, the sources said.

At least 15 locations in and around the city were searched by the agency under the Prevention of Money Laundering Act (PMLA).

The allegations against the promoters pertain to cheating of over Rs 100 crore from more than 15,000 depositors by luring them to make deposits with high interest.

These funds were "diverted" through unsecured loans to associates and most of the loans became non performing assets (NPAs) and the money was laundered and used to buy properties, the sources said.

The federal probe agency has detected more than 20 "high-value" properties linked to the promoters and these could be attached under the anti-money laundering law in the future, they said.

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