ED Raids in Delhi, Jalgaon, and Ahmedabad Uncover Rs. 7.5 Crore in Fraud by Dnyanraddha Multistate Co-operative Society
The Enforcement Directorate (ED) in Mumbai conducted search operations at multiple locations in Delhi, Jalgaon, and Ahmedabad. These raids were part of an ongoing investigation into Dnyanraddha Multistate Co-operative Society Ltd. (DMCSL) and its chairman, Suresh Kute, among others.
The raids took place on Friday and Saturday under the Prevention of Money Laundering Act (PMLA) 2002. During these operations, the ED froze movable assets worth approximately Rs. 7.5 Crore, including bank funds, fixed deposits, and Demat account holdings. Various incriminating documents and digital devices were also seized.
The investigation began after multiple FIRs were registered between May and July 2024 by various police stations in Maharashtra. These FIRs were filed under different sections of the Indian Penal Code (IPC) 1860 and the Maharashtra Protection of Interest of Depositors (MPID) Act 1999, concerning fraud committed by Suresh Kute and others through DMCSL.
According to the FIRs, the estimated amount of fraud with investors is around Rs. 168 Crore. DMCSL, managed by Suresh Dnyanobarao Kute, Yashvant V Kulkarni, and others, had floated various deposit schemes promising high returns of 12% to 14%. However, the investors were cheated, and their funds were embezzled by the management for personal gains.
The ED’s investigation revealed that Suresh Kute, in collaboration with Dibyayan Das Sharma, had fabricated false documents showing a structured investment promising Rs. 10,000 Crore over five years from M/s. Minventa Research, Luxembourg. These fraudulent documents were distributed among DMCSL investors to prevent them from taking legal action, falsely assuring them that all investors would be repaid.
These fabricated documents were also used as submissions before various judicial forums, including the High Court and the National Company Law Tribunal (NCLT), to mislead authorities and present the Kute Group as financially solvent.
Earlier, on August 9, 2024, the ED had conducted search operations in this case, freezing movable assets worth approximately Rs. 1.73 Crore and seizing various other incriminating documents and digital devices. The total seizure in this case now amounts to approximately Rs. 9.2 Crore.
Doubts Revealed
ED -: ED stands for Enforcement Directorate. It is a government agency in India that investigates financial crimes like money laundering.
Raids -: Raids are sudden visits by police or other officials to search for illegal activities or evidence.
Delhi -: Delhi is the capital city of India.
Jalgaon -: Jalgaon is a city in the state of Maharashtra, India.
Ahmedabad -: Ahmedabad is a major city in the state of Gujarat, India.
Rs. 7.5 Crore -: Rs. 7.5 Crore means 75 million Indian Rupees. It’s a large amount of money.
Fraud -: Fraud is when someone tricks others to get money or something valuable.
Dnyanraddha Multistate Co-operative Society -: Dnyanraddha Multistate Co-operative Society is a financial organization that operates in multiple states in India.
Chairman -: A chairman is the leader or head of an organization or company.
Suresh Kute -: Suresh Kute is the name of the chairman of Dnyanraddha Multistate Co-operative Society.
Prevention of Money Laundering Act -: This is a law in India that helps to stop money laundering, which is hiding where money really comes from.
Assets -: Assets are things that have value, like money, property, or investments.
Seizure -: Seizure means taking something by force, usually by law enforcement.
Incriminating documents -: These are papers that show someone might have done something illegal.
Investors -: Investors are people who put money into something to try to make more money.