The Enforcement Directorate (ED) has attached assets worth INR 1,003 crore, including over 100 acres of industrial land, as part of its investigation into the Dnyanradha Multistate Co-operative Credit Society Ltd. The case, led by Suresh Kute and others, involves alleged embezzlement of INR 2,318.45 crore. Earlier, assets worth INR 86 crore were also seized. The ED's findings reveal that society funds were fraudulently diverted as loans to companies within The Kute Group, owned by Suresh and Archana Kute. Investors were promised high returns but many were defrauded, prompting calls for stronger regulations in the co-operative credit sector.
The Enforcement Directorate has attached immovable assets valued at INR 1,003 crore, including over 100 acres of land featuring industrial plots, in connection with the ongoing investigation into the Dnyanradha Multistate Co-operative Credit Society Ltd, spearheaded by Suresh Kute and others. This case centers on the alleged embezzlement of funds totaling INR 2,318.45 crore. The seized assets also include various properties, such as land and buildings located in Mumbai and several districts across Maharashtra, including Aurangabad, Beed, and Jalna.
This is not the first instance of asset attachment in this case, as the agency had previously seized properties worth INR 86 crore. Investigations led by the Enforcement Directorate revealed that the management of Dnyanradha Multistate Co-operative Credit Society Ltd, including Suresh Kute, allegedly engaged in a criminal conspiracy to illicitly divert substantial funds disguised as loans to various companies within The Kute Group, which is owned by Suresh Kute and his wife, Archana.
Upon the fraudulent disbursement of these loan amounts, the funds were reportedly siphoned through multiple accounts controlled by the Kute Group or withdrawn in cash. According to the agency's findings, the funds appropriated from the credit society were used for personal gain, encompassing investments in new ventures, property purchases, and other personal expenses. Suresh Kute, Yashvant Kulkarni, and others were at the helm of managing the credit society, which had launched various deposit schemes promising attractive interest rates of 12% to 14%. The credit society also offered a range of borrowing options, including personal loans, simple loans, salary loans, term loans, gold loans, and fixed deposit loans.
The Enforcement Directorate uncovered that Suresh Kute and his associates lured unsuspecting investors into depositing their money with promises of highly appealing returns. However, many investors either received no payments or only partial returns upon maturity of their deposits, leading to widespread fraud while the society's management misappropriated the funds for personal purposes.
Overall, the actions taken by the Enforcement Directorate underscore the pressing need for strengthened regulatory measures within the co-operative credit sector to safeguard investors. As the investigation unfolds, it is crucial to promote accountability and transparency in order to deter similar fraudulent practices in the future. This case serves as a vital reminder of the inherent risks tied to promises of high returns and emphasises the importance of conducting thorough due diligence for investors pursuing financial opportunities.
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