The Directorate of Enforcement (ED), Mangaluru, has filed a Prosecution Complaint before the Hon’ble III Additional District and Sessions Judge, Mangaluru (Special Court PMLA), on September 4, 2025, against M/s Kamalakshi Vividodhesha Sahakara Sangha Niyamitha, its president B.V. Laxminarayana, manager Asha Rao, and director Radhika under the Prevention of Money Laundering Act (PMLA), 2002.
The case pertains to a multi-crore cooperative society scam in Udupi. ED initiated its probe based on multiple FIRs registered by Udupi CEN Crime Police under various sections of the IPC, alleging large-scale financial fraud.
Investigations revealed that the accused, led by Laxminarayana, mobilized deposits worth Rs 32.73 crore from the public in the name of Kamalakshi Vividodhesha Sahakara Sangha Niyamitha and Ganapathi Investments by luring investors with promises of returns up to 15% per annum. However, the society defaulted on interest and principal repayments, leaving scores of depositors defrauded.
ED further found that the funds were diverted by Laxminarayana for purchasing immovable properties in his and his wife’s names. These assets have already been attached under the Karnataka Protection of Interest of Depositors in Financial Establishments (KPIDFE) Act, 2004.
The ED confirmed that further investigation into the money trail and beneficiaries is underway.
