Mumbai: The Enforcement Directorate (ED) Mumbai has attached assets worth approximately Rs 333.82 crore on Tuesday, November 5, in connection with the Dnyanradha Multistate Co-operative Credit Society Ltd (DMCSL) fraud case. This involves the society’s chairman, Suresh Kute, and others. Kute, who was arrested in July, is currently in judicial custody.
The attached properties include immovable assets, such as the properties, plant, and machinery of Kute Sons Dairys Ltd and Kute Sons Fresh Dairy Pvt Ltd, located in Satara and Ahmednagar, Maharashtra. The total value of assets seized, frozen, or attached is approximately Rs 1,433.48 crore in this money Laundering case.
The ED's investigation is based on FIRs registered at various police stations in Maharashtra between May and July 2024. These FIRs cite several sections of the Indian Penal Code (IPC), 1860, and the Maharashtra Protection of Interest of Depositors (MPID) Act, 1999, regarding the fraud committed by Kute and others through DMCSL, which attracted investors with promises of high returns. DMCSL was managed and controlled by Kute, Yashvant V Kulkarni, and others. It floated various deposit schemes (Ponzi schemes) and claimed to provide interest rates ranging from 12% to 14%.
During the agency's investigation, it was revealed that Kute and others lured more than 4 lakh investors to deposit money with DMCSL by promising high returns. However, no payments or only partial payments were made to investors when their deposits matured, the ED said.
The investigation further disclosed that the funds of DMCSL were embezzled by its management, where Kute and others orchestrated a criminal conspiracy to illegally divert Rs 2,467.89 crore (Proceeds of Crime) under the guise of loans to various companies of The Kute Group (a group of companies beneficially owned by Suresh Kute and his wife, Mrs. Archana Kute). Upon disbursement of these fraudulent loan amounts, the funds were siphoned off through several accounts of Kute Group entities or directly in cash. The funds received from the society were further utilized for personal benefits, such as investments in new businesses, property purchases, and other personal expenses.
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The ED conducted three search operations in connection with this case on August 9, September 20, and October 14, 2024, seizing or freezing movable assets worth approximately Rs 10.99 crore. Additionally, provisional attachment orders were issued for assets valued at Rs 85.88 crore on September 24 and Rs 1,002.79 crore on October 9, bringing the total value of assets seized, frozen, or attached to approximately Rs 1,433.48 crore.
The ED has stated that further investigation into the fraudulent activities of DMCSL and its associates is ongoing.