Bengaluru: The Cubbon Park police on Tuesday conducted raids at the residences of two accused in the EPF Staff Credit Co-operative Society financial misappropriation case, recovering luxury vehicles and gold ornaments valued in crores. The operation, authorised through a court-issued search warrant, was part of the ongoing probe into large-scale fund diversion and fraudulent transactions within the society.
Raids conducted at multiple locations
According to Hakay Akshay Machindra, Deputy Commissioner of Police (Central), the raids were carried out at the homes of Gopinath, the CEO of the society, and Lakshmi, a member of his staff. Both were previously arrested soon after the registration of the case. “We will not disclose more details since the case is under investigation,” said the DCP. The police searched premises located in Rajaram Mohan Roy Road, where the society’s office operates, as well as residential properties in RR Nagar, JP Nagar, and Anjanapura.
Valuables worth crores seized
During the search, police reportedly seized seven cars, 12 two-wheelers, and gold ornaments worth crores of rupees. Sources close to the investigation said that several documents and digital storage devices were also taken for forensic examination. Preliminary findings suggest that the accused may have diverted member funds from the society’s operational accounts to personal accounts and shell entities. Officers are verifying the financial trail and analysing transaction records to determine the full extent of the misappropriation.
FIR and initial arrests
The case originated from a complaint filed on November 1 by Muralidhara C J, president of the EPF Staff Credit Co-operative Society. The FIR names Gopinath and Jagadish, the society’s accountant, as key accused. Muralidhara alleged that an internal audit of the society’s financial statements revealed several irregular fund transfers and unauthorised withdrawals. “Scrutiny of bank accounts, transaction records, and administrative activities revealed illegal transfer of funds from certain accounts,” the complaint stated. Following the FIR, the Cubbon Park police swiftly arrested Gopinath and Jagadish and began tracing assets suspected to have been acquired through the diverted funds.
Investigation into possible wider network
Investigators believe the case could involve a larger network of staff and external associates, given the volume of money and number of accounts under scrutiny. Police are now analysing the role of other employees and verifying whether society members’ contributions were misappropriated over an extended period. Officers have also sought transaction details from multiple banks to identify any third-party involvement. Officials from the Registrar of Co-operative Societies are assisting the police in reviewing the society’s governance and compliance mechanisms.
Background of the society
The EPF Staff Credit Co-operative Society, located on Rajaram Mohan Roy Road in central Bengaluru, was established to provide financial assistance and credit facilities to its members, most of whom are salaried employees. Over the years, the society had built a reputation for reliability, until complaints began surfacing about irregular payments and delayed disbursals. The alleged fraud, which came to light last month, has shaken members’ trust, prompting the authorities to order a thorough financial and administrative review.
Next steps
Police sources said that forensic audits of the society’s accounts are underway and additional arrests are possible once the money trail is fully established. The authorities plan to file a detailed charge sheet after the completion of the investigation. Meanwhile, society members have urged the government to appoint an independent administrator to oversee the recovery process and restore operational transparency.