Bengaluru Police have arrested Gopi, the Chief Executive Officer (CEO) of the Employees Provident Fund Organisation (EPFO) Staff Credit Co-operative Society, and Lakshmi Jagadish, a staff member, in connection with a Rs70 crore fraud.
According to police, the co-operative society has been operating for over six decades, managed by EPFO employees to benefit both serving and retired staff who invested their fixed deposits (FDs).
Officers said investors had been receiving monthly interest until payments suddenly stopped three months ago. The scam came to light when a staff member attempted to withdraw money and found irregularities in the accounts.
Investigations revealed that while Rs3 crore had been issued as legitimate loans, the remaining investor funds—amounting to several crores—had allegedly been siphoned off by the accused.
Police have seized multiple luxury vehicles reportedly purchased using the diverted funds. A third suspect, accountant Jagadish, is absconding, and search operations are ongoing. Further investigation is in progress.
