Major Rs 70 Crore Fraud Uncovered at EPFO Credit Society: Two Arrested in Bengaluru

The suspects in custody were identified as Gopi, the society's CEO (left), and Lakshmi Jagadish, an employee (right).

Bengaluru:

Authorities in Bengaluru have apprehended two individuals implicated in a massive Rs 70 crore financial scam involving the Employees Provident Fund Organisation (EPFO) Staff Credit Co-operative Society.

Police have detained the society's Chief Executive Officer (CEO), Gopi, along with staff member Lakshmi Jagadish. Investigators revealed that the credit society had been operational for 61 years, established by EPFO employees to provide financial services for current and retired personnel who placed their fixed deposits (FDs) with the organization.

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According to official statements, investors had regularly received their monthly interest payments until these distributions suddenly ceased three months ago. Concerns emerged when a staff member attempted to withdraw funds and discovered financial discrepancies.

The subsequent investigation uncovered that a considerable amount of the investors' deposits was no longer present in the society's financial accounts. While approximately Rs 3 crore had been legitimately distributed as loans, authorities believe the remaining funds were fraudulently diverted.

As part of their investigation, police have confiscated multiple luxury vehicles. A third suspect involved in the scheme, accountant Jagadish, remains at large, with law enforcement actively pursuing his whereabouts. The investigation continues to develop as authorities work to recover the misappropriated funds.