Mumbai: The Enforcement Directorate (ED) has accused businessman and chairman of Dnyanradha Multi-state Cooperative Society Ltd (DMCSL), Suresh Kute, of diverting funds amounting to Rs 2,467 crore to various companies of the Kute group. It is alleged that Kute floated 22 companies and four LLP firms to divert these funds in the guise of loan.
ED Obtains Suresh Kute's Custody
The ED on Wednesday obtained Kute’s custody till January 10 for interrogation. While remanding him to the custody of the agency, special judge AC Daga observed, “There is prima facie involvement of the accused in the crime. Considering the magnitude of the offence, coupled with the fact that the investigating agency could identify property worth Rs 1,400 crore, not granting the custody will hamper further investigation.”
The court added that ED needs to identify the remaining property to know the enduser of funds, and seize proceeds of crime. The ED claimed that the coop society was managed and controlled by Kute as its chairman and vice-chairman Yashvant Kulkarni, who dominated the Board of Directors, also close relatives or associates of the two. It is claimed that the bank had a total outstanding loan of Rs 3,558 crore, out of which, “an overwhelming Rs 3,545.05 crore, or nearly the entire outstanding loan amount, is attributed to various companies under the Kute group”.
The ED claimed that Kute and Kulkarni hatched the conspiracy, illegally diverted funds amounting to Rs 2,467.89 crore in the guise of loans to their companies. The entire loan amount was siphoned by the conspirators through several accounts or directly in the form of cash, the ED said, adding that none of it was used for the stated purposes.
