Co-op Credit Society Scandal: Promoter Arrested in Major Fraud Case

The Enforcement Directorate has arrested Suresh Kute, a promoter of Dnyanradha Multistate Co-operative Society Ltd, for allegedly duping investors of over Rs 2,470 crore. The society had offered high-interest deposit schemes but failed to pay returns, leading to fraud accusations and legal action.

The Enforcement Directorate (ED) has apprehended Suresh Kute, a key figure in a Maharashtra-based cooperative credit society accused of orchestrating a massive fraud scheme. Kute, taken into custody on January 7, faces allegations related to embezzling funds from Dnyanradha Multistate Co-operative Society Ltd (DMCSL).

According to the ED, Kute and others attracted over 4 lakh investors with promises of high returns between 12-14% on deposits. However, the investments were either not returned or only partially repaid upon maturity, resulting in billions in losses for investors.

The investigation further revealed that funds were funneled into personal ventures and properties owned by Kute and his family. Authorities have traced the money trail, attaching over Rs 1,400 crore in assets during searches last year, with ongoing inquiries into the complex web of financial malfeasance.

(With inputs from agencies.)