In accordance with the Prevention of Money Laundering Act of 2002, the Directorate of Enforcement (ED) detained Rajesh VR in the matter of Sri Guru Raghavendra Sahakara Bank ( Sri Guru Raghavendra Bank) Niyamitha in relation to the theft of public deposits of more than Rs. 1000 crore. He is the main recipient of the money that was stolen from the bank with the help of the bank’s executives.
He received loans from the bank totalling Rs. 40.40 Crore, according to the RBI’s Inspection report, but he hasn’t paid them back. The inquiry has also shown that Rajesh VR and his wife are the subjects of many FIRs for public fraud that they allegedly perpetrated in various cooperative banks and societies. As a result, they commit crimes frequently.
Prior to this, an ECIR was filed by the ED based on an FIR filed by Bengaluru Police against the Sri Guru Raghavendra Bank and others under different IPC sections and u/s 9 of the Karnataka Protection of Interest Depositors in Financial Establishments Act, 2004.
It was discovered during the PMLA inquiry that the aforementioned Sri Guru Raghavendra Bank had pledged to pay depositors greater interest rates that did not correspond to the going market rate. Without thoroughly examining the loans, the Sri Guru Raghavendra Bank executives constructed phoney loan accounts and transferred funds to them, which were then moved to delinquent loan accounts for evergreening reasons to demonstrate the bank’s sound financial standing.
Prior to this, the Enforcement Directorate impounded the accused’s movable and immovable property, which was worth a total of Rs. 45.32 crores. The Hon’ble Adjudicating Authority (PMLA), New Delhi, acknowledged this in an order dated 10-03-2021. The arrestee would be in the care of the ED for three days, according to Bangalore’s Principal City Civil and Sessions Judge. The situation is still being looked into further.
