Post by : Rameen Ariff

Bengaluru police have detained two people over an alleged Rs 70 crore fraud at the Employees Provident Fund Organisation (EPFO) Staff Credit Co-operative Society. Authorities have named the society’s chief executive officer, Gopi, and staff member Lakshmi Jagadish as the accused.

The credit society, which has operated for more than 60 years, catered to current and retired EPFO workers who placed fixed deposits for long-term returns. Members were receiving regular interest payments until roughly three months ago, when attempts to withdraw funds exposed inconsistencies in the records.

Preliminary inquiries indicate about Rs 3 crore were properly issued as loans, while the balance is suspected to have been misappropriated. The alleged irregularity came to light after a routine withdrawal by a member flagged accounting anomalies.

Investigators have also impounded several high-end vehicles linked to the accused as part of the probe. A third individual, identified as accountant Jagadish, remains missing and is being actively pursued by police.

The episode has alarmed society members who relied on the cooperative to safeguard their savings. Law enforcement continues to probe the full extent of the shortfall and to recover misused funds.

Officials say the case highlights governance gaps in cooperative financial bodies and reinforces calls for stricter oversight to protect depositors.

#Global