ED Targets Dnyanradha Multistate Co-Operative Society: Over ₹1,000 Crore in Assets Provisionally Attached in Massive Fraud Investigation
(Judicial Quest News Network)
On October 9, 2024, the Directorate of Enforcement (ED) from the Mumbai Zonal Office provisionally attached immovable assets valued at approximately ₹1,002.79 crore linked to Dnyanradha Multistate Co-operative Credit Society Ltd (DMCSL) and its key figure, Suresh Kute, under the Prevention of Money Laundering Act (PMLA), 2002. The attached assets include substantial land and buildings located across Mumbai, Aurangabad, Beed, and Jalna districts in Maharashtra.
The investigation was launched following multiple FIRs filed between May and July 2024 by various police stations in Maharashtra, addressing fraudulent activities perpetrated by Kute and others through DMCSL. This co-operative society, managed by Suresh Dnyanobarao Kute and Yashvant V. Kulkarni, enticed over 400,000 investors with promises of lucrative deposit schemes offering interest rates between 12% and 14%. However, many investors reported receiving no payments or only partial returns upon maturity of their deposits, leading to widespread financial loss.
The ED’s findings indicate a complex web of embezzlement orchestrated by the management of DMCSL. Kute and his associates allegedly devised a criminal conspiracy to divert approximately ₹2,318.45 crore, deemed proceeds of crime, under the guise of loans to various companies owned by the Kute Group, including those beneficially controlled by Kute and his wife, Archana Kute. These funds were reportedly siphoned off through multiple accounts or converted to cash, ultimately financing personal investments, property acquisitions, and other expenses.
Earlier investigations, including search operations conducted on August 9 and September 20, 2024, led to the freezing and seizure of movable assets worth around ₹9.2 crore. Additionally, a provisional attachment order for assets totaling ₹85.88 crore was issued on September 24, 2024. To date, the cumulative value of seizures and attachments in this ongoing case amounts to approximately ₹1,097.87 crore.
The ED continues to pursue further investigations as they uncover the extent of this alleged financial fraud.
