Bengaluru EPFO Credit Society Embezzlement of Rs 70 Crore, Two Detained

Post by : Raina Nasser

Police in Bengaluru have detained two individuals over an alleged embezzlement totalling Rs 70 crore at the Employees' Provident Fund Organisation (EPFO) Staff Credit Co-operative Society. The suspects identified by investigators are the society's chief executive, Gopi, and employee Lakshmi Jagadish.

The EPFO credit society, which has served active and retired EPFO staff for more than six decades, accepted fixed deposits aimed at long-term savings. Members had been receiving regular interest up until about three months ago, when routine withdrawals exposed inconsistencies in the society's accounts.

Preliminary audit findings indicate that around Rs 3 crore were properly disbursed as loans, while the remaining sum appears to have been diverted. The irregularities were first noticed when a staff member's withdrawal triggered closer scrutiny of records.

Investigators have seized a number of high-end vehicles linked to the accused as part of the ongoing probe. A third individual, an accountant named Jagadish, is currently evading arrest and is being actively pursued by police.

The development has alarmed society members who relied on the institution to safeguard their savings. Officials say efforts are under way to trace and recover the missing funds.

Authorities emphasise that the case exposes weaknesses in oversight of co-operative financial bodies and have called for stronger governance measures to protect depositors.