Directorate of Enforcement (ED), Bengaluru Zonal Office has conducted search operations on
17.07.2025 under the provisions of Prevention of Money Laundering Act (PMLA), 2002 at 15 locations
across Bengaluru and Ramanagara Districts including the office of Shushruti Souharda Sahakara Bank
Niyamitha and residential premises of its chairman N Srinivasa Murthy and other accused/suspected
persons. During search proceedings incriminating documents, details of properties acquired out of
Proceeds of Crime generated out of commission of offence of money laundering have been collected.
ED initiated money laundering investigation on the basis of various FIRs registered by Karnataka
Police wherein it was alleged that the bank neither paid interest nor returned principle amounts to its
customers on their Fixed Deposits or Savings Accounts held with the bank. It was also alleged that the
Chairman and Directors of Shushruti Souharda Sahakara Bank Niyamitha in collusion with the
employees of the bank, had siphoned off the deposits made by the customers of the bank and cheated
them.
During the investigation under PMLA, 2002, it was found that N Srinivasa Murthy, his wife Smt.
Dharini Devi and their daughter Ms. Mokshatara, Chairman, Director and Functional Director,
respectively, of Shushruti Souharda Sahakara Bank Niyamitha were instrumental in the diversion of funds
from the bank. ED investigation also revealed that S N Srinivasa Murthy floated different financial entities
viz. Shruti Souharda Credit Co-operative Society, Shree Lakshmi Mahila Co-Op Society (Managed by
Ms. Rathnamma, close relative of Srinivasa Murthy) etc. and accepted deposits from various depositors
with an intention to cheat them.
It was also revealed that Srinivasa Murthy and others used to sanction loans in the names of their
close associates, without following proper procedure and at times without any collateral. The loan
account was later turned into NPA and N Srinivasa Murthy and others used to get properties registered
in their names from the said amount.
ED investigation also revealed that Ms. Mokshatara, D/o Srinivasa Murthy used to take
employees of Shushruti Souharda Sahakara Bank Niyamitha to the office of SROs and purchase
properties in their names and simultaneously get General Power of Attorney in her name.
ED Raids Unearth Alleged Money Laundering by Shushruti Bank Chairman
Published on:
