Bengaluru, Sep 11
The Bengaluru Zonal Office of the Enforcement Directorate (ED) has provisionally attached two immovable properties worth about Rs 3.62 crore belonging to N. Srinivasa Murthy, the then Chairman of Shushruti Souharda Sahakara Bank Niyamitha and Rathnamma, a close relative of Srinivasa Murthy, under the provisions of Prevention of Money Laundering Act (PMLA), 2002, in a case related to cheating with account holders of the bank, the official statement said on Thursday.
It was also revealed that Srinivasa Murthy and others used to sanction loans in the names of their close associates, without following proper procedure and at times without any collateral. Srinivasa Murthy and others used to get properties registered in their names from the said loan amount and the loan accounts were later turned into NPA," according to the ED.
Further investigation is underway.