Seized properties of Guru Sarvabhauma Souharda Credit Co-operative restituted

The case pertains to misappropriation of depositor’s money by top officials of Guru Sarvabhauma Souharda Credit Co-operative bank in connivance with borrowers. 
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A Special Prevention of Money Laundering Act (PMLA) court on Monday restituted 16 immovable and 46 movable properties with an approximate market value of ₹50 crore in favour of the competent authority appointed under the Karnataka Protection of Interest of Depositors in Financial Establishments Act, 2004 (KPID) for Guru Sarvabhauma Souharda Credit Co-operative Limited, Bengaluru.

This, according to an official release, will help recover the loss incurred by the victims in the form of their deposits along with the assured returns on the deposits which were allegedly diverted by the society.

The recent order by the Court restituting these properties would enable the competent authority to distribute the proceeds of sale of the attached properties among the depositors.

The case pertains to misappropriation of depositor’s money by the top officials of the bank in connivance with the borrowers. The accused society had floated and was running a well-designed “ponzi scheme” under the ruse of effecting highly profitable return on investment and has induced lakhs of gullible depositors to invest in the said society and diverted the said funds through fictitious loan accounts and failed to return the same to the depositors as assured and promised, said the ED release.

During the investigation under PMLA, search and seizure actions were conducted and four accused persons, including the Chairman of the Society, were arrested, four complaints were filed and two Provisional Attachment Orders were issued with movable and immovable properties valuing ₹159.51 crore were attached.

Based on the ED’s initiative and meetings with the Competent Authority, a restitution application under Section 8(8) of the PMLA, 2002, was filed before the Special PMLA Court, Bengaluru for the release of immovable and moveable properties seized by the ED, Bengaluru.

The ED urged the Court to release the attached properties in favour of Competent Authority to resituate the same to the rightful victims of the fraud, said the release.