Overview The Directorate of Enforcement (ED), Bengaluru Zonal Office has provisionally attached eleven immovable properties valued at ₹16.95 crore belonging to Srivaibhava Sourhardha Pattina Sahakari Niyamitha president Nagavalli B.S. , CEO Rajesh V.R. and their associated entities. The attachment order was passed on 12 February 2026 under the provisions of the Prevention of Money Laundering Act (PMLA), 2002 . The properties, spread across Ramanagara, Mysuru and Bengaluru , are alleged to have been acquired using proceeds of crime generated through systematic diversion of public deposits. Key Developments Development 1: The ED issued a provisional attachment order on 12 February 2026 , freezing eleven land parcels, plots and buildings worth ₹16.95 crore to prevent dissipation of alleged laundered money. Development 2: The action stems from an FIR lodged by Subramanyapura Police Station after a complaint by the Managing Director of Karnataka State Federal Co‑Operative Ltd. , alleging that the co‑operative society sanctioned unsecured loans to entities owned by the president and CEO, leading to massive losses for depositors. Development 3: Investigation under PMLA uncovered that the couple, who incorporated the society in 2011 , allegedly diverted approximately ₹65 crore of public deposits through fictitious entities and personal bank accounts, subsequently channeling the funds into immovable assets, business ventures and personal consumption. Important Facts Fact 1: Eleven immovable properties across three districts have been attached, with a cumulative market value of ₹16.95 crore . Fact 2: The alleged money‑laundering scheme involved diversion of roughly ₹65 crore of public deposits, unsecured loan sanctioning, and creation of shell entities to mask the flow of funds. UPSC Relevance This case touches upon multiple UPSC syllabus areas: Governance & Public Administration (regulation of co‑operative societies, role of ED, enforcement of PMLA), Economic Development (impact of fraudulent loan practices on depositors and financial stability), and Law & Justice (interpretation of PMLA, procedural aspects of attachment and prosecution). Questions may be framed on the effectiveness of anti‑money‑laundering legislation, the oversight mechanisms for co‑operative institutions, or the broader implications of financial fraud on public trust. Way Forward Strengthening supervisory frameworks for co‑operative societies, ensuring stringent security norms for loan disbursement, and enhancing inter‑agency coordination between police, ED and financial regulators are essential to curb similar frauds. Periodic audits, real‑time monitoring of large deposits, and faster adjudicatory mechanisms under PMLA can deter misuse of public funds and safeguard depositor interests.