Pramesh S Jain & Yogesh K Porwar
In a major crackdown in the Guru Raghavendra Cooperative Bank scam worth Rs 1,400, the Enforcement Directorate (ED) arrested key accused K Ramakrishna.
The Enforcement Directorate on Wednesday arrested K Ramakrishna,President of Sri Guru Raghavendra Sahakara Bank in connection with misappropriation of public deposits to the tune of more than Rs1000 Crore.
The ED has taken up the case on February 2020 based on the FIR registered by Banaswadi police under the Karnataka Protection of Interest Depositors in Financial Establishments Act, against K Ramakrishna and others.
During the investigation under PMLA,it is revealed that officers and employees of the bank siphoned off the money deposited by the public with the bank.
The Bank promised to give higher interest rate to the depositors which were not in the line with the prevailing market rate.
The money deposited by the depositors was siphoned off to various persons including employees of the bank without obtaining proper security of the loans.
The bank officers created fictitious loan accounts and transferred the money to these accounts which in turn was transferred to overdue loan accounts to show strong financial health of the Bank.
The Enforcement Directorate had attached movable and immovable properties belonging to the accused persons valuing to Rs.45 Crore.
Ramakrishna has been booked under various sections of the Prevention of Money Laundering Act, 2002 .
The accused was produced before the Principal City Civil and Sessions court and obtained four days’ custody for further investigations says ED in their release.
