ED Attaches Rs 16.95 Cr Properties in Karnataka Co-op Scam

The Directorate of Enforcement (ED), Bangalore Zonal Office has provisionally attached 11 immovable properties worth ₹16.95 crore under PMLA, 2002 on 12.02.2026 in a cooperative society fraud case.

Key Attachment Details

  • Total properties attached: 11 immovable properties
  • Type of properties: Land, plots, and buildings
  • Locations: Ramnagara, Mysore, and Bangalore
  • Market value: ₹16.95 crore

Accused Individuals

  1. Rajesh VR – CEO, Sirivaibhava Sourhardha Pattina Sahakari Niyamitha Society
  2. Smt. Nagavalli BS – President, Sirivaibhava Sourhardha Pattina Sahakari Niyamitha Society

Basis of ED Investigation

The ED initiated the probe based on an FIR registered by Subramanyapura Police Station, Bengaluru.

The FIR alleged that:

  • Loans were sanctioned to entities owned by the President and CEO without proper surety
  • The loan amounts were not repaid
  • Depositors suffered wrongful losses due to misuse of official positions

Modus Operandi of the Scam

ED investigation revealed that:

  • The accused incorporated the cooperative society in 2011 with dishonest intent
  • Public deposits of approximately ₹65 crore were diverted
  • Proceeds of Crime (POC) were routed through personal and fictitious entity accounts
  • Diverted funds were used for:
    • Purchase of immovable properties
    • Business investments
    • Personal consumption

Further investigation is under progress.

Source: ED Press Release dated 14/02/2026 on Karnataka Co-op Scam case
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