Bengaluru Police have arrested two individuals in connection with a Rs 70 crore fraud involving the Employees Provident Fund Organisation (EPFO) Staff Credit Co-operative Society.
The accused have been identified as the society's Chief Executive Officer (CEO), Gopi, and an employee, Lakshmi Jagadish. According to police, the credit society has been functioning for 61 years, run by EPFO employees for the benefit of both serving and retired staff who invested their fixed deposits (FDs) in it.
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Police said investors had been receiving regular monthly interest until payments stopped three months ago. Suspicion arose when a staff member attempted to withdraw funds and noticed irregularities.
A probe revealed that a significant portion of the investors' deposits was missing from the society's account. While around Rs 3 crore had been disbursed as loans, the remaining funds had allegedly been misappropriated.
Police have seized several luxury vehicles as part of the investigation. A third suspect, accountant Jagadish, is currently on the run, and efforts are underway to trace him. Further investigation is in progress.
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