Karnataka ED attaches immovable properties worth Rs 17 Crore

The attached properties were bought by the accused persons from the money generated through criminal activity.

ED initiated the investigation after an FIR was registered by the Subramanyapura police against the society president, CEO and others. (eXPRESS iLLUSTRATION)

BENGALURU: The Directorate of Enforcement (ED), Bengaluru Zonal Office, has provisionally attached 11 immovable properties belonging to the president and CEO of Srivaibhava Souharda Pattina Sahakari Niyamitha Cooperative Society having a market value of Rs. 16.95 crore on Thursday.

The attached properties were bought by the accused persons from the money generated through criminal activity. The attached immovable properties include land, plots and buildings situated in Ramanagara, Mysuru and Bengaluru.

ED initiated the investigation after an FIR was registered by the Subramanyapura police against the society president, CEO and others. The 11 immovable properties belong to society’s president BS Nagavalli and CEO Rajesh VR.

The FIR was registered on the basis of complaint filed by the Managing Director, Karnataka State Federal Co-Operative Limited, alleging that the society had sanctioned loans to the entities owned by Rajesh and Nagavalli, husband and wife, without obtaining proper surety and the same loan amount has not been repaid by the entities. The key person of the entity has caused wrongful loss to its depositors for their own benefit by misusing their post and power, an ED press release stated.

During the investigation under PMLA, various other FIRs and chargesheets were filed by the police against the accused society and its key management personnel.

Rajesh and Nagavalli incorporated the co-operative Society in 2011. They in collusion with other accused persons/entities, majority of which were opened by them, diverted deposits of the public amounting to around Rs. 65 crore and thus generated Proceeds of Crime.

A major part of this Proceeds of Crime was routed in their personal accounts and in the accounts of the fictitious entities opened by them for the purpose of money laundering.

The diverted amount was further utilised for their personal gain such as purchase of immovable properties, investment in business and personal consumption etc, the press release added.