ED arrests Guru Raghavendra bank president Ramakrishna, to be in custody till Feb 18

Guru Raghavendra Cooperative Bank president Ramakrishna, accused of sanctioning over Rs 800 crore by creating fake accounts and cheating thousands of account holders, was arrested by ED officials. The ED officials who arrested him on Tuesday, produced him at the session court, and took him under custody till February 18. 

In a major crackdown in the Guru Raghavendra Cooperative Bank scam worth Rs 1,400, the Enforcement Directorate (ED) arrested key accused K Ramakrishna.

President of the bank K Ramakrishna and his son KR Venugopal had cheated by allegedly creating fake documents and sanctioning loans. This act landed the bank in a stressful situation and thousands of account holders were left inconvenienced as there was a cap on withdrawal.

Customers launched a protest and a complaint was also filed, later CID probing the case arrested some of the accused in this connection. Now, ED probing the case has arrested its president K Ramakrishna.

The ED confirmed via its official Twitter handle about the development. 'ED arrested Shri K Ramakrishna, President of M/s. Sri Guru Raghavendra Sahakara Bank Niyamitha under PMLA, 2002 in connection with misappropriation of public deposits to the tune of more than Rs.1000 Crore,' the ED wrote on its official handle

Scroll to load tweet…

It is said that the ED officials arrested him on Tuesday and produced him before the sessions court in connection with sanctioning over Rs 800 crores using fake documents. The court ordered the custody of the accused under ED till February 18.
As per reports, 2,876 account holders were given a loan amount of a whopping Rs 1544.43 crore out of which Rs 892.95 crore was said to have been given to fake accounts.

A complaint in this regard has already been filed at Basavanagudi police station. As the matter was out, the ED took up the case and arrested him under the Prevention of Money Laundering Act and is probing the case further.