The Directorate of Enforcement (ED) in Mumbai has taken possession of six properties in Kharghar, Mumbai and Pune owned by Suresh Kute, Archana Kute and their associated entities worth INR92.9 million (USD976,301) under the Prevention of Money Laundering Act, 2002.
Multiple first-information reports (FIRs) had been filed across the state of Maharashtra against Suresh Kute alleging investor fraud.
It is alleged that Suresh Kute and others, through Dnyanradha Multistate Co-operative Credit Society, lured investors by launching high-yield deposit schemes offering high returns of 12%-14%. The investors ultimately suffered substantial financial loss due to non-payment or partial payment of deposits.
Investigations show that INR24.67 billion of the society’s funds were loaned to Kute Group, beneficially owned and controlled by Suresh Kute and Archana Kute.
The loans were made through irregular procedures, including a lack of proper documentation, collateral security or end-use certification, investigations revealed. The amount was used for illegitimate business activities and the funds were siphoned off for personal benefit or invested in unrelated business interests.
Both Suresh Kute and Archana Kute have been arrested over this matter and the proceedings against them are ongoing.
