Bengaluru EPFO Credit Society Fraud Rs 70 Crore Embezzled, 2 Arrested

Bengaluru police have arrested two individuals in connection with a massive Rs 70 crore fraud at the Employees Provident Fund Organisation (EPFO) Staff Credit Co-operative Society. The accused have been identified as the society’s Chief Executive Officer, Gopi, and employee Lakshmi Jagadish.

The EPFO credit society, operational for over six decades, has served both active and retired EPFO employees who invested their fixed deposits (FDs) for long-term financial benefits. Investors had been receiving regular interest payments until three months ago, when withdrawals revealed discrepancies in the society’s accounts.

A detailed investigation showed that while approximately Rs 3 crore had been legitimately disbursed as loans, the remaining funds were allegedly misappropriated. The fraud came to light when a staff member attempted a routine withdrawal and noticed irregularities.

Authorities have seized several luxury vehicles linked to the accused as part of the ongoing probe. A third suspect, accountant Jagadish, remains at large, and police are actively tracking him.

The incident has raised serious concerns among members who trusted the society for safe investment of their hard-earned savings. Investigations are continuing to uncover the full extent of the fraud and recover the missing funds.

This case highlights vulnerabilities in financial co-operative institutions and underscores the need for tighter oversight to protect investors.