Mumbai: The Enforcement Directorate (ED), investigating a Rs 2,467 crore fraud involving Suresh Kute, chairman of Dnyanradha Multi-State Cooperative Society Ltd (DMCSL), has revealed irregularities in loan disbursements. According to the ED, loans were often sanctioned and recorded as disbursed, even when the bank lacked sufficient deposits to release the funds.
ED prosecutor Arvind Aghav, while requesting an extension of Kute's custody on Friday, highlighted, “Of the total funds amounting to Rs 2,467.89 crore that the Kute Group appears to have obtained from the Dnyanradha Society, a significant portion was actually deposited into the accounts of Kute Group companies. However, the remaining amounts were merely roll-over entries reflected in the group's accounts.
“Since the society was unable to disburse entire deposits to depositors, it was incurring or bound to incur losses. Therefore, to cover up these losses, Kute and the officials of the society were showing such excess non-disbursed funds as loans given to Kute Group. It appears that the amount mentioned against Kute's companies may differ from their actual disbursement made to them because most of the time these loan entries were being made in a very casual manner,” ED alleged.
The court extended Kute's further ED custody till January 14 observing, “If further ED custody of accused is not granted then it will hamper the investigation and the investigating officer will not be in a position to find the remaining proceeds of crime.”
