The Directorate of Enforcement (ED), Bengaluru Zonal Office, conducted search operations on 17.07.2025 under the provisions of the Prevention of Money Laundering Act (PMLA), 2002, at 15 locations across Bengaluru and Ramanagara districts.
The premises included the office of Shushruti Souharda Sahakara Bank Niyamitha and the residential properties of its Chairman, N. Srinivasa Murthy, along with other accused/suspected individuals. During the search, incriminating documents and details of properties acquired using Proceeds of Crime (PoC) generated through money laundering were seized.
The ED initiated the money laundering investigation based on multiple FIRs registered by the Karnataka Police. These FIRs alleged that the bank had failed to pay interest or return the principal amounts to its customers on their Fixed Deposits and Savings Accounts. It was further alleged that the Chairman and Directors of the bank, in collusion with bank employees, had siphoned off customer deposits and committed large-scale fraud.
During the course of investigation under the PMLA, 2002, it was revealed that N. Srinivasa Murthy, his wife Smt. Dharini Devi, and their daughter Ms. Mokshatara, Chairman, Director, and Functional Director respectively of Shushruti Souharda Sahakara Bank Niyamitha, played a key role in the diversion of funds from the bank.
The ED further found that Srinivasa Murthy had floated various financial entities such as Shruti Souharda Credit Co-operative Society and Shree Lakshmi Mahila Co-operative Society (managed by Ms. Rathnamma, a close relative of Srinivasa Murthy), and had collected deposits from the public with fraudulent intent.
It was also uncovered that loans were sanctioned in the names of close associates of the accused without adhering to standard procedures and often without collateral. These loan accounts eventually turned into NPAs, and the loan amounts were used by the accused to purchase properties in their own names.
The investigation also revealed that Ms. Mokshatara used to accompany employees of Shushruti Souharda Sahakara Bank Niyamitha to Sub-Registrar Offices (SROs) to purchase properties in their names, while simultaneously obtaining General Power of Attorney in her own name.
Further investigation is underway.
