ED Arrests Archana Kute In ₹2,467-Crore Dnyanradha Credit Society Money-Laundering Case

Mumbai, March 5: The Enforcement Directorate (ED) has arrested Archana Kute in connection with a Rs 2,467-crore money-laundering probe linked to the alleged diversion of funds from the Dnyanradha Multistate Co-operative Credit Society Ltd (DMCCSL) to companies of the Kute Group, which investigators claim are beneficially owned or controlled by her and her husband, Suresh Kute. The credit society is accused of duping thousands of investors through high-return deposit schemes.

Kute was arrested on March 2 by the ED’s Mumbai Zonal Office under provisions of the Prevention of Money Laundering Act (PMLA). She was produced before a special PMLA court in Mumbai on March 3, which remanded her to ED custody till March 7 for further investigation.

Earlier, the ED had arrested Suresh Kute in the case and filed a prosecution complaint before the Special PMLA Court in Mumbai, which has taken cognisance of the offence.

Probe based on multiple FIRs

The ED’s money-laundering probe is based on multiple FIRs registered between May and July 2024 by various police stations across Maharashtra under sections of the Indian Penal Code (IPC) over alleged fraud on investors by Suresh Kute and others through DMCCSL.

Alleged diversion of investor funds

The ED investigation alleged that the credit society had launched high-yield deposit schemes promising returns of 12% to 14%, attracting a large number of investors. However, many depositors allegedly suffered financial losses after the society failed to repay deposits or made only partial payments.

ED investigators said the probe revealed that funds worth around Rs 2,467 crore from the credit society were diverted as purported “loans” to a cluster of companies belonging to the Kute Group, which are allegedly beneficially owned or controlled by Suresh Kute and Archana Kute.

Officials said the disbursals were made without proper documentation, collateral security or end-use certification. Instead of being utilised for legitimate business activities, the funds were allegedly siphoned off for personal gains or invested in unrelated business ventures.

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Assets worth over Rs 1,600 crore attached

So far, the ED has conducted multiple searches in the case and issued several provisional attachment orders, leading to the attachment and seizure of movable and immovable assets worth approximately Rs 1,621.89 crore.

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