Money laundering probe: ED raids premises linked to three banks

Bengaluru: The Enforcement Directorate (ED) on Thursday raided over 15 locations in and around Bengaluru in connection with an alleged Rs 100-crore fraud across three co-operative banks.

The searches targeted the promoters and families of Shushruti Souhardha Bank, Shruthi Souharda Bank, and Shree Lakshmi Souharda Bank, sources said.

ED officials alleged that N Srinivas Murthy, a promoter, and his family duped over 15,000 depositors by offering high interest rates and later diverting funds through unsecured loans to associates.

Most loans turned into Non-Performing Assets (NPAs), with the money laundered and used to purchase properties.

The alleged violations fall under the Prevention of Money Laundering Act (PMLA), officials said, adding that over 20 high-value properties were discovered during the raids.

2023 raid 

In October 2023, the Bengaluru police’s Central Crime Branch (CCB) raided Shushruti Souharda Sahakara Bank Niyamita. Three separate FIRs were registered.

The Reserve Bank of India cancelled the bank’s licence in July 2023, citing lack of adequate capital and earning prospects, a year after imposing withdrawal curbs.