BENGALURU
The Cubbon Park police have arrested two individuals in connection with the alleged misappropriation of funds from the EPFO Staff Credit Co-operative Society, which was formed 61 years ago exclusively for EPFO employees.
The accused have been identified as CEO Gopinath and employee Lakshmi Jagadish. Both are currently in police custody and being questioned, while searches are underway at locations linked to the accused.
According to the complaint, the society collected savings from hundreds of employees, giving loans to those in need and paying monthly interest to investors. However, when interest payments were not credited for three consecutive months, investors inspected the society’s accounts and discovered that only Rs 3 crore remained. Large sums of funds had allegedly been transferred to unauthorized accounts, prompting investors to lodge a formal complaint with the Cubbon Park police.
Police have also conducted raids at the homes of Gopinath, Jagadish, and other staff members including Lingegowda and Ramanuja, as well as the society premises in Richmond Circle. Residences in RR Nagar, JP Nagar, and Anjanapur were searched under a court-approved warrant. During these raids, authorities recovered gold ornaments, cash, and investment-related documents.
Over 300 depositors are reported to have been affected, with misappropriated funds estimated at around Rs 70 crore. Police investigations are ongoing to trace the diverted money and identify additional individuals involved. The case highlights growing concerns over financial management in employee-run co-operative societies.