Dnyanradha credit society ponzi scheme: ED attaches assets worth Rs 333 crore

The ED’s probe is based connected FIRs registered astatine assorted constabulary stations successful Maharashtra during the May-July 2024 play for alleged concern fraud committed connected investors by Kute and others through the DMCSL.

The DMCSL was managed and controlled by Kute, Yashvant V Kulkarni and others. It floated assorted Ponzi schemes and claimed to supply involvement which varied from 12 per cent to 14 per cent.

During the agency’s investigation, it was recovered that Kute and others lured much than 4 lakh gullible investors to deposit wealth with the DMCSL by promising higher returns. However, nary outgo oregon lone partial payments were made to the investors erstwhile the deposits matured, resulting successful investors being cheated, the ED said.

The ED probe has besides revealed that the funds of the DMCSL were embezzled by the absorption of the society, wherein Suresh Kute and others hatched a transgression conspiracy to illegally and fraudulently divert funds amounting to Rs 2,467.89 crore (proceeds of crime) successful guise of loans to assorted companies of The Kute Group (group of companies beneficially owned by Suresh Kute and his woman Archana Kute).

“Upon the disbursement of these fraudulent indebtedness amounts, the funds were siphoned disconnected by them done respective accounts of the entities of Kute Group oregon straight successful the signifier of cash. The funds received from DMCSL were further utilised for their ain idiosyncratic benefits similar concern successful caller businesses, purchasing spot and idiosyncratic expenses,” the cardinal bureau stated.

Earlier, the ED had conducted hunt operations successful this lawsuit connected aggregate occasions and seized movable and immovable assets to the tune of Rs 9.2 crore. A provisional attachment bid for assets worthy Rs 85.88 crore connected September 24 and Rs 1,002.79 crore connected October 9 this year, were besides issued successful the matter, taking the full seizure/freezing and attachments successful this lawsuit to Rs 1,433.48 crore, the ED said.