The Enforcement Directorate (ED) raided more than 15 places in Karnataka regarding the money laundering case related to the Cooperative Society. ECIR has been registered in this case, which N.K. Srinivas was done on the basis of FIR lodged against Murthy and his family members and close associates.
Murthy started Sushruti Sahard Cooperative Bank. He is the chairman of this bank. His wife Dharni Devi is the director of this bank and his daughter Mokshatara is a functional director.
What is the charge?
It is alleged that the bank stopped paying interest to customers on their fixed deposit and savings account. When people asked the bank why the interest was not being received, the bank employees deferred it as a server problem. It is alleged that the chairman, directors and some bank employees grabbed the amount deposited by the customers in connivance.
The enforcement direction is conducting searches at more than 15 places in and around bengaluru related to shushruti souhardha bank, shruthi souharda bank and shree lakshmi souhada bank and their promotors, n Srinivas Murthy and His Family Members in a Case Related to…
– ANI (@ani) July 17, 2025
How was people implicated?
Srinivas Murthy asked people to get FD and term deposits in the bank by luring more interest. People deposited money in the bank in the name of themselves and their family. Later he started the Shruti Harid Credit Co-operative Society, in which her relative B.V. Satish (brother -in -law) president and Deepak ji (nephew) became vice -president. Initially people got interest, but after 2021-22 neither got interest, nor FD was allowed to be discontinued. Many people were cheated in this way.
How was there a mess?
Murthy created different financial institutions, such as Shri Lakshmi Mahila Co-operative Society (which is operated by his second wife) and there too by depositing money from people there. He bought several properties in the name of his family and friends. The chairman of every necessary committee of the bank (loan, investment, audit etc.) was themselves, so that they could use the bank’s amount desired.
He gave loans to people close to him without any guarantee, most of which the bank did not get back the amount. The loan amount was often withdrawn in cash or turning around in the accounts of the idol, their family or their business institutions.
How was the money rotated?
Murthy moved the money through bank accounts of her family, relatives and close ones, so that the real source could be hidden. This is a classic method of money laundering, in which bank accounts and assets were used to make black money valid.
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