BENGALURU: The probe into the Rs 70-crore Employees’ Provident Fund Organisation (EPFO) Staff Credit Co-operative Society Limited scam has revealed that the prime accused had allegedly been misappropriating funds since 2009 by taking money from depositors and later repaying it to conceal the fraud. He allegedly misappropriated more than Rs 15 crore so far.
Cubbon Park police, who are investigating the case, have arrested the prime accused, CEO G Gopinath (A1), and Lakshmi R (A7), the wife of former accountant B L Jagadish (A2). Jagdish and eight other accused in the scam are currently absconding. According to sources, Gopinath, who has been serving the society for nearly 10 years and had previously held key positions before becoming the CEO, has allegedly misappropriated more than Rs 15 crore.
Sources also said Gopinath has admitted to have siphoned off around Rs 5–6 crore belonging to the society. He allegedly transferred large sums directly from the society’s account to the bank accounts of his wife and daughter.
The money was allegedly used to purchase movable and immovable properties. Gopinath is reported to have accepted huge amounts of cash as fixed deposits, violating both the Reserve Bank of India (RBI) guidelines and the society’s bylaws and rules.
He also allegedly fabricated documents such as bank statements to cover up the fraud. In total, Gopinath and other accused allegedly misappropriated more than Rs 70 crore from nearly 300 depositors.
The probe also revealed that Lakshmi received around Rs 6.5 crore in multiple transfers from the society’s bank account to her account between 2009 and 2024. She had opened several accounts in her name.
From Lakshmi’s premises, the police seized five bikes, four expensive cars, about 400 grams of gold ornaments, silver articles and property documents. They have also freezed her bank account containing Rs 20 lakh.
While the police custody of the two accused will end on November 12, the case is set to be transferred to the CID, as the amount of money involved is huge.