ED Raids in Multiple Cities Uncover Rs. 7.5 Crore in DMCSL Fraud Case

The Enforcement Directorate conducted searches in Delhi, Jalgaon, and Ahmedabad concerning a fraud by Dnyanraddha Multistate Co-operative Society Ltd. Rs. 7.5 crore in assets have been frozen and numerous incriminating documents seized. The scam reportedly defrauded investors of approximately Rs. 168 crore.

The Enforcement Directorate (ED) has carried out search operations at various locations in Delhi, Jalgaon, and Ahmedabad as part of the ongoing probe into Dnyanraddha Multistate Co-operative Society Ltd. (DMCSL), involving its chairman Suresh Kute and several others. The searches took place on Friday and Saturday under the Prevention of Money Laundering Act (PMLA) 2002.

Officials reported that these operations resulted in the freezing of movable assets, including bank funds, fixed deposits, and demat account holdings worth approximately Rs. 7.5 crore. Additionally, a variety of incriminating documents and digital devices were seized. The ED initiated the investigation following a series of FIRs registered between May and July 2024 by multiple Maharashtra police stations under various sections of the IPC, 1860 and the MPID Act, 1999, related to fraud cases involving Suresh Kute and DMCSL.

The FIRs, verified so far, suggest that the alleged fraud amounts to around Rs. 168 crore. DMCSL, managed by Suresh Dnyanobarao Kute and Yashvant V Kulkarni, floated several deposit schemes promising high returns of 12% to 14%, only to cheat and embezzle the investors' funds. The ED uncovered that Kute and Dibyayan Das Sharma had fabricated documents claiming a structured investment of Rs. 10,000 crore over five years from M/s. Minventa Research, Luxembourg. These fraudulent documents were used to mislead investors and judicial authorities, including the High Court and NCLT, presenting the Kute Group as financially stable.

Previously, on August 9, 2024, the ED had frozen assets worth roughly Rs. 1.73 crore and seized various incriminating documents and digital devices in the same case. The total frozen assets now amount to approximately Rs. 9.2 crore.

(With inputs from agencies.)