The Enforcement Directorate (ED) has filed a prosecution complaint against 24 accused in connection with the Rs. 2,467 crore fraud involving M/s Dnyanradha Multistate Co-operative Credit Society (DMCCSL).
Directorate of Enforcement (ED), Mumbai Zonal Office has filed a Prosecution Complaint (PC) before the Hon’ble Special Court (PMLA), Mumbai on 06.03.2025 in the case of M/s. Dnyanradha Multistate Co-operative Credit Society Ltd (DMCSL) & others against 24 accused i.e Suresh Kute, M/s Dnyanradha Multistate Co-op Credit Society Ltd & others.
The Court took cognizance of the PC on 11.03.2025 and has issued proceedings against the accused persons.
ED initiated investigation based on various FIRs registered by various Police Stations of Maharashtra under various Sections of IPC, 1860 and MPID Act, 1999 in respect of fraud committed with the investors by Suresh Kute and others through M/s. Dnyanradha Multistate Co-operative Credit Society Ltd (DMCSL).
DMCSL was managed and controlled by Suresh Dnyanobarao Kute, Yashvant V Kulkarni and others. It floated various deposit schemes and claimed to provide interest which varied from 12% to 14%. During the PMLA investigation, it was found that Suresh Kute & others lured more than 4 lakh gullible investors to deposit money with DMCSL by promising higher returns. However, no payment or only partial payments were made to the investors when the deposits were matured, resulting in them being cheated.
ED investigation revealed that the funds of DMCSL were embezzled by management of the society, wherein Suresh Kute and others hatched a criminal conspiracy to illegally and fraudulently divert funds amounting to Rs. 2,467 Crore (approx.) in the guise of loans to various companies of The Kute Group (Group of companies beneficially owned by Suresh Kute and family). Upon the disbursement of these fraudulent loan amounts, the funds were siphoned off by them through several accounts of the entities of The Kute Group or directly in the form of cash. The funds received from society were further utilized for their own personal benefits like investment in new businesses, purchasing property and personal expenses.
Earlier, ED conducted search operations in this case on 09.08.2024, 20.09.2024, and 14.10.2024. During these search operations, movable assets to the tune of Rs. 11 Crore (approx.) were frozen/seized. ED also issued Provisional Attachment Orders for assets worth Rs. 85.88 Crore on 24.09.2024, Rs. 1,002.79 Crore on 09.10.2024 and Rs.333.82 Crore on 05.11.2024. Total value of seizure / freezing and attachment of assets in this case till date stands at Rs. 1433.48 Crore (approx.). ED had earlier arrested Suresh Kute on 07.01.2025 who is currently in judicial custody.
