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Karnataka husband-wife duo in the dock: ED attaches properties worth Rs 16.95 crore in probe into cooperative society scam
ED has provisionally attached 11 properties belonging to Nagavalli B S and Rajesh V R, the president and CEO, respectively, of Srivaibhava Sourhardha Pattina Sahakari Niyamitha.
The cooperative society allegedly sanctioned loans to entities owned by its president and CEO without securing proper collateral (Image generated using AI).
The Directorate of Enforcement (ED) Saturday provisionally attached 11 immovable properties valued at Rs 16.95 crore belonging to Srivaibhava Sourhardha Pattina Sahakari Niyamitha president Nagavalli B S, her husband Rajesh V R, and associated entities under the provisions of the Prevention of Money Laundering Act (PMLA), according to an official press release.
The attachment order was issued on February 12 and effected by the ED’s Bengaluru Zonal Office, the release said. The properties, comprising land, plots and buildings in Ramanagara, Mysuru and Bengaluru, are alleged to have been acquired using proceeds of crime generated through criminal activities.
The ED’s investigation was launched based on an FIR registered by the Subramanyapura police station, Bengaluru, against Srivaibhava Sourhardha Pattina Sahakari Niyamitha, Nagavalli, Rajesh and others. The FIR was filed following a complaint by the managing director of Karnataka State Federal Co‑operative Limited.
According to the complaint, the cooperative society had sanctioned loans to entities owned by its president and CEO without securing proper collateral. The loans allegedly remained unpaid, resulting in wrongful loss to depositors, the release said.
During the PMLA probe, the agency collected records of additional FIRs and chargesheets filed by police against the society and its key officials. Investigators found that Rajesh and Nagavalli had incorporated the cooperative society in 2011 with “dishonest intent to mobilise public deposits and divert them for personal gain”, the agency alleged.
The agency said its probe revealed that in collusion with other accused persons and entities – many of which were allegedly set up by the couple – they diverted about Rs 65 crore of public deposits, generating proceeds of crime. A significant portion of these funds was allegedly routed through their personal bank accounts and fictitious entities to launder the money.
The diversion of funds was allegedly used to purchase immovable properties, make business investments and meet personal expenses, the enforcement agency added.
Further investigation is underway, the agency said.
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