Rs 168-crore fraud: ED conducts searches in Delhi, Gujarat and Maharashtra
The ED conducted fresh searches in Delhi, Gujarat, and Maharashtra in the case against M/s Dnyanraddha Multistate Co-operative Society Ltd. (DMCSL), Suresh Kute, under the PMLA.
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The case pertains to investor fraud to the tune of Rs 168 crore, as per multiple police FIRS filed between May and July 2024 at various police stations in Maharashtra under sections of the IPC and MPID Act, following which the ED had picked it up. (Express Archives) The Enforcement Directorate, Mumbai Zonal office, raided multiple locations in Delhi, Maharashtra’s Jalgaon, and Ahmedabad as part of its ongoing investigation against a co-operative society in connection with a Rs168 crore worth investment fraud.
The searches were carried out against Maharashtra-based M/s Dnyanradha Multistate Co-operative Society (DMCSL), on September 20 and 21, under the Prevention of Money Laundering Act, said a statement from the ED on Monday.
During the raids, movable assets to the tune of Rs 7.5 crore were frozen along with the seizure of allegedly incriminating documents, said the statement.
The ED had started a probe into the matter based on FIRs registered between May and July 2024 at multiple police stations in Maharashtra under the IPC and the Maharashtra Protection of Interest of Depositors Act in connection with the alleged fraud committed by DMCSL chairman Suresh Kute and others with investors.
According to the FIRs, the “tentative amount of fraud with investors amounts to Rs168 crore”. DMCSL was managed and controlled by Suresh Dnyanobarao Kute, Yashvant V Kulkarni and others, said the FIR.
“DMCSL floated various deposit schemes to lure investors by promising high returns ranging from 12% to 14%. However, the investors were cheated and their funds were embezzled by management of the society for their personal gains by hatching a criminal conspiracy,” the statement said. ED probe stated that Suresh Kute, in connivance with Dibyayan Das Sharma had “fabricated false documents showing a structured investment allegedly promising a funding of Rs10,000 crore over five years from M/s Minventa Research, Luxembourg through the securitization of the Kute Group’s assets”.
“Fraudulent documents related to the scheme were also distributed among investors to prevent them from pursuing legal action against Suresh Kute and others, with the false assurance that all the investors would be repaid,” said the statement. “These fake documents were also used before Maharashtra High Court and National Company Law Tribunal (NCLT) in an attempt to mislead the authorities and present the Kute Group as financially solvent,” said the statement.
Earlier, the ED had conducted raids in August and frozen movable assets to the tune of Rs 1.73 crore. Total seizure in this case so far amounts to Rs 9.23 crore, said the statement.
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