The Enforcement Directorate (ED) conducted raids at more than 15 locations in and around Bengaluru on Thursday, investigating an alleged ₹100-crore financial scam involving three co-operative banks.
According to sources, the searches focused on the founders and relatives linked to Shushruti Souhardha Bank, Shruthi Souharda Bank, and Shree Lakshmi Souharda Bank. Investigators claimed that N Srinivas Murthy, one of the key promoters, along with his family, misled over 15,000 investors by promising inflated interest returns.
The ED alleged that the collected funds were unlawfully redirected through unsecured loans to close associates. These loans later defaulted, becoming Non-Performing Assets (NPAs). Authorities believe the laundered funds were funneled into real estate purchases, violating the provisions under the Prevention of Money Laundering Act (PMLA).
During the raids, officials reportedly identified more than 20 expensive properties believed to have been bought using the diverted money.
This isn’t the first instance of scrutiny. Back in October 2023, Bengaluru’s Central Crime Branch (CCB) had raided the premises of Shushruti Souharda Sahakara Bank Niyamita and lodged three different FIRs. Earlier, in July 2023, the Reserve Bank of India (RBI) revoked the bank’s license, citing poor capital adequacy and unsustainable earnings. This came a year after the RBI had placed limits on withdrawals due to financial instability.
The investigation is ongoing, with further action expected from regulatory and enforcement agencies.