Pramesh S Jain
In a major financial fraud,the Cubbon Park police have arrested two persons,including the CEO of the Employees’Provident Fund Organisation (EPFO) Staff Credit Cooperative Society,on charges of embezzling around Rs.70 crore from the society’s funds.
The arrested accused have been identified as Gopi,the society’s CEO,and Lakshmi Jagadish,a staff member.
Another key suspect,accountant Jagadish,is currently absconding,and efforts are on to trace him, police said.
The EPFO Staff Credit Cooperative Society, which has been functioning for over 61 years,was established by EPFO employees for mutual financial support.
Both serving and retired employees had invested large sums as fixed deposits (FDs) in the society and received monthly interest payments as per norms.
However,when the interest payments stopped for nearly three months,several investors grew suspicious and demanded an audit of the accounts.
Upon verification,they discovered that large portions of their FD amounts were missing from the society’s account.
Preliminary findings revealed that while loans amounting to only Rs.3 crore had been disbursed,the remaining funds—estimated at around Rs.70 crore—were unaccounted for.
Investors have alleged that the CEO and certain staff members misappropriated the funds for personal use. Acting on a complaint, Cubbon Park police registered a case and arrested the two accused.
A detailed investigation is underway to trace the missing funds and apprehend the absconding accountant.
