ED attaches ₹16.95 crore properties in Sirivaibhava co-operative deposit scam

The Directorate of Enforcement (ED) has provisionally attached 11 immovable properties worth ₹16.95 crore belonging to Rajesh V R and Smt. Nagavalli B S in connection with an alleged co-operative society scam involving diversion of public deposits.

In a press release issued on February 14, 2026, the ED’s Bengaluru Zonal Office said the attachment was carried out on February 12 under the Prevention of Money Laundering Act (PMLA). The properties — comprising land, plots and buildings located in Ramnagara, Mysuru and Bengaluru — were allegedly purchased using proceeds of crime .

The investigation was initiated on the basis of an FIR registered by Subramanyapura Police Station against Sirivaibhava Souharda Pattina Sahakari Niyamitha, its president Smt. Nagavalli B S, its CEO Rajesh V R, and others. The FIR stemmed from a complaint by the Managing Director of Karnataka State Federal Co-operative Limited, alleging that the society had sanctioned loans to entities owned by its president and CEO without obtaining proper surety. The loans were allegedly not repaid, resulting in wrongful loss to depositors .

According to the ED, Rajesh V R and Nagavalli B S — who are legally wedded — had incorporated the co-operative society in 2011 with the intent of mobilising public deposits and diverting the funds for personal gain. The agency alleged that, in collusion with others and through entities largely controlled by them, the accused diverted around ₹65 crore in deposits, generating proceeds of crime .

The ED said a substantial portion of the funds was routed through their personal bank accounts and accounts of fictitious entities allegedly created for money laundering. The diverted money was subsequently used to purchase immovable properties, invest in businesses and meet personal expenses .

Further investigation is under way, the agency said.