ED Files Charges Against 24 in ₹2,467 Crore Credit Society Scam; Investors Cheated with Fake Promises
Mumbai:
The Enforcement Directorate (ED) has taken action against 24 individuals, including businessman Suresh Kute, in a massive ₹2,467 crore fraud linked to the Dnyanradha Multistate Co-operative Credit Society (DMCCSL). The ED filed a prosecution complaint before the Special Court (PMLA) in Mumbai on March 6, accusing Kute and others of orchestrating a financial scam that lured over four lakh investors with promises of high returns.
How the Scam Unfolded
The investigation revealed that Kute and his associates convinced investors to deposit money in DMCCSL by offering attractive interest rates ranging from 12% to 14%. However, when these deposits matured, investors either received no returns or only partial payments, leading to widespread financial distress.
Further scrutiny exposed a criminal conspiracy where funds deposited in DMCCSL were misused by its management. Instead of being used for legitimate financial activities, the money was allegedly siphoned off through fraudulent loans to various companies under The Kute Group, a business entity owned by Kute and his family.
Where the Money Went
According to the ED, these fraudulent loans were funneled through multiple accounts linked to The Kute Group and even withdrawn in cash. The siphoned money was reportedly used for personal expenses, purchasing properties, and funding new business ventures.
ED’s Crackdown on the Scam
To trace and recover the misused funds, the ED carried out multiple search operations on August 8, September 20, and October 14, 2024. During these raids, movable assets worth ₹11 crore were seized, and properties worth ₹1,433.48 crore have been frozen or attached so far.
Another Fraud Case Under ED’s Radar
In a separate case, the ED’s Aizawl sub-zonal office conducted raids on March 12 across Assam and Mizoram in connection with a vehicle loan fraud. Investigators found that a group of car dealers, Mahindra & Mahindra Financial Services (MMFSL) employees, and others had conspired to create fake loan applicants using fabricated documents, including fake Aadhaar and voter ID cards. This scheme allowed them to siphon off funds fraudulently from MMFSL.
The ED continues to probe both cases, working to bring those responsible to justice and recover the defrauded funds.
News Source : Information for this article was gathered from a variety of reliable news outlets.
