ED raids 10 locations in Karnataka in multi-crore cooperative bank scam probe

The Enforcement Directorate (ED) conducted raids on Tuesday at ten locations across Bengaluru and Shivamogga in Karnataka as part of its investigation into an alleged scam involving the District Cooperative Bank. The operation was initiated under the Prevention of Money Laundering Act (PMLA) and was based on specific intelligence inputs pointing to large-scale financial misconduct.

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The ED is probing suspected financial irregularities and potential money laundering linked to the operations of multiple cooperative banks in the region. The searches were aimed at uncovering documents and digital evidence that could support the ongoing investigation.

Authorities have been closely examining the operations of three Bengaluru-based cooperative banks — Sri Guru Raghavendra Co-operative Bank Limited, Sri Vasista Credit Souharda Co-operative Limited, and Sri Guru Sarvabahuma Souharda Credit Co-operative. Allegations have emerged suggesting that top executives, including directors and senior staff, were involved in a multi-crore fraud, leading to significant fund misappropriation.

These developments come amid rising scrutiny over the governance and financial practices of cooperative banks in Karnataka. The ED's ongoing investigation seeks to determine the extent of the alleged fraud and identify those responsible for the financial malpractice. The raids are expected to bring critical evidence to light and may pave the way for further legal action against those implicated in the scam.