Yogesh K Porwar
The Directorate of Enforcement (ED),Bengaluru Zonal Office, has provisionally attached 11 immovable properties worth Rs.16.95 crore belonging to Rajesh V.R., his wife Smt.Nagavalli B.S,and their associated entities under the provisions of the Prevention of Money Laundering Act (PMLA).
According to a press release issued on February 14,the attachment order was passed on February 12, 2026.
The properties,comprising land,plots and buildings located in Ramanagara,Mysuru and Bengaluru,were allegedly acquired using proceeds of crime generated through criminal activities.
The ED initiated investigation based on an FIR registered by Subramanyapura Police Station,Bengaluru,against Srivaibhava Sourhardha Pattina Sahakari Niyamitha,its president,Nagavalli B.S,CEO,Rajesh V.R,and others.
The FIR was filed following a complaint by the Managing Director of Karnataka State Federal Co-Operative Limited.
As per the complaint,the society had sanctioned loans to entities owned by its president and CEO without obtaining proper security.The loan amounts were allegedly not repaid, resulting in wrongful loss to depositors.
During investigation under PMLA,the ED gathered additional FIRs and charge sheets filed by police against the accused society and its key management personnel.
The probe revealed that Rajesh V.R.and Nagavalli B.S., had incorporated the co-operative society in 2011 with dishonest intent to mobilise public deposits and divert them for personal gain.
Investigators allege that,in collusion with other accused persons and entities—many of which were allegedly created by them—the couple diverted approximately Rs.65 crore of public deposits,thereby generating proceeds of crime.
A substantial portion of the funds was allegedly routed through their personal bank accounts and fictitious entities for the purpose of money laundering.
The diverted funds were allegedly used for purchasing immovable properties, business investments and personal consumption.Further investigation is in progress, the ED stated.
