<p>The Enforcement Directorate (ED) has arrested the president of a Bengaluru-based cooperative bank in a money laundering case linked to alleged misappropriation of public funds to the tune of over Rs 1,000 crore, the agency said on Wednesday.</p>.<p>K Ramakrishna, president of Sri Guru Raghavendra Sahakara Bank Niyamitha, was subsequently produced before the principal city civil and sessions judge, who granted a four-day custody of the accused to the ED, it said in a statement.</p>.<p>The federal probe agency said "officers and employees of the bank siphoned off the money deposited by the public with the bank".</p>.<p>"The bank promised to give higher interest rates to the depositors, which were not in line with the prevailing market rate. The money deposited by the depositors was advanced/siphoned off to various persons, including employees of the bank, without obtaining proper security for the loans," it said.</p>.<p>The agency alleged that the bank officials created "fictitious" loan accounts and transferred the money to these accounts, which in turn was transferred to overdue loan accounts for ever-greening purposes to show strong financial health of the bank.</p>.<p>Assets worth Rs 45 crore were attached by the ED in the case earlier, after it filed a money laundering case against Ramakrishna and others in February 2020.</p>.<p>The case was filed after taking cognisance of a Bengaluru Police (Banaswadi police station) FIR registered under various sections of the IPC and the Karnataka Protection of Interest of Depositors in Financial Establishments Act, 2004 against the accused.</p>.<p><strong>Watch latest videos by DH here:</strong></p>
<p>The Enforcement Directorate (ED) has arrested the president of a Bengaluru-based cooperative bank in a money laundering case linked to alleged misappropriation of public funds to the tune of over Rs 1,000 crore, the agency said on Wednesday.</p>.<p>K Ramakrishna, president of Sri Guru Raghavendra Sahakara Bank Niyamitha, was subsequently produced before the principal city civil and sessions judge, who granted a four-day custody of the accused to the ED, it said in a statement.</p>.<p>The federal probe agency said "officers and employees of the bank siphoned off the money deposited by the public with the bank".</p>.<p>"The bank promised to give higher interest rates to the depositors, which were not in line with the prevailing market rate. The money deposited by the depositors was advanced/siphoned off to various persons, including employees of the bank, without obtaining proper security for the loans," it said.</p>.<p>The agency alleged that the bank officials created "fictitious" loan accounts and transferred the money to these accounts, which in turn was transferred to overdue loan accounts for ever-greening purposes to show strong financial health of the bank.</p>.<p>Assets worth Rs 45 crore were attached by the ED in the case earlier, after it filed a money laundering case against Ramakrishna and others in February 2020.</p>.<p>The case was filed after taking cognisance of a Bengaluru Police (Banaswadi police station) FIR registered under various sections of the IPC and the Karnataka Protection of Interest of Depositors in Financial Establishments Act, 2004 against the accused.</p>.<p><strong>Watch latest videos by DH here:</strong></p>