Mumbai: The Enforcement Directorate (ED) has filed a Prosecution Complaint (PC) before the Special Court (PMLA), Mumbai, on March 6,, in connection with the Dnyanradha Multistate Co-operative Credit Society Ltd (DMCSL) fraud case. The complaint names 24 accused, including Suresh Kute and DMCSL, for allegedly duping investors through fraudulent deposit schemes promising interest returns of 12% to 14%. However, when the deposits matured, investors either received no payments or were only partially refunded, leading to significant financial losses.

On Tuesday, the court took cognizance of the chargesheet filed by the central agency and initiated legal proceedings against the accused.

The ED’s investigation under the Prevention of Money Laundering Act (PMLA), 2002, revealed that Suresh Kute and his associates lured over 4 lakh investors to deposit money into DMCSL, promising high returns. However, instead of fulfilling these promises, investors were cheated, as the funds were embezzled and misused.

The ED's case in the matter is based on multiple FIRs registered by various police stations in Maharashtra under sections of the Indian Penal Code and the Maharashtra Protection of Interest of Depositors (MPID) Act with respect to the alleged fraud committed with investors by Kute and others through DMCSL.

As per the agency, DMCSL was managed and controlled by Suresh Dnyanobarao Kute, Yashvant V Kulkarni and others. Kute was arrested on January 7 this year and is currently in judicial custody.

The central agency’s investigation reportedly revealed that the funds of DMCSL were embezzled by the management of the society as part of which Kute and the others hatched a criminal conspiracy to illegally and fraudulently divert Rs 2,467 crore in the guise of loans to various companies of The Kute Group, a group of companies beneficially owned by Kute and his family.

Upon the disbursement of these fraudulent loan amounts, they siphoned off the funds through several accounts of the entities of The Kute Group or directly in the form of cash. The funds received from the society were further utilised for their own personal benefits like investment in new businesses, purchasing property, and personal expenses, the ED said in its statement.

Last year, the agency conducted multiple search operations and seized movable assets to the tune of Rs 11 crore in this connection. The total value of seizure or freezing and attachment of assets in this case till date stands at Rs 1,433.48 crore.