ED raids 10 locations in bank scam probe

Bengaluru

The Enforcement Directorate (ED) conducted raids at 10 locations in Bengaluru and Shivamogga on Tuesday, in connection with an alleged scam involving the District Cooperative Bank.

These simultaneous searches were carried out under the Prevention of Money Laundering Act (PMLA) based on specific intelligence inputs. The investigation is focused on suspected financial fraud and laundering of funds linked to the cooperative bank's operations.

Officials said the searches aim to collect evidence related to irregularities and the misuse of bank funds. The ED is investigating claims of multi-crore fraud involving the directors, chief executives, and staff of three Bengaluru-based banks — Sri Guru Raghavendra Co-operative Bank Limited, Sri Vasista Credit Souharda Co-operative Limited, and Sri Guru Sarvabahuma Souharda Credit Co-operative.

According to ED sources, "The misappropriation of funds and suspicious transactions by members of the bank boards are under close examination."

These raids mark a significant step in uncovering the financial wrongdoing within cooperative banking institutions and ensuring accountability of those involved.