Archive · 5 Nov 2025
EPFO Credit Society CEO, Employee Arrested in Rs 70 Crore Bengaluru Fraud
Imagine a special piggy bank, run by people who work for a government office, where other workers and retired people put their savings.
This piggy bank was supposed to give people a little bit of money every month from their savings.
But then, it stopped giving out the money.
When people checked, it turned out that a lot of the money was missing!
Two people in charge of the piggy bank, the boss and a helper, have been arrested.
Police are looking for another person who handled the money.
They think a lot of the savings were taken and not used for loans as they should have been.
They have even found fancy cars that might have been bought with the stolen money.
Two individuals, including the CEO of the EPFO Staff Credit Co-operative Society, have been arrested in Bengaluru.
The arrests are linked to a Rs 70 crore fraud involving misappropriated funds from the society.
Investors reportedly stopped receiving interest payments three months ago, leading to the discovery of irregularities.
Police investigations revealed a significant portion of deposits are missing, beyond the Rs 3 crore disbursed as loans.
A third suspect, the society's accountant, is currently at large, and luxury vehicles have been seized.
- Who
- The CEO and an employee of the EPFO Staff Credit Co-operative Society, Gopi and Lakshmi Jagadish, have been arrested.
- What
- A Rs 70 crore fraud involving the misappropriation of investor deposits in the EPFO Staff Credit Co-operative Society.
- When
- The fraud was uncovered recently, with investors reporting interest payments stopped three months prior.
- Where
- Bengaluru
- Why
- Allegations of misappropriation of funds, with only a portion disbursed as loans.
Official Statements
Investor Concerns
Fund Misappropriation
Official Statements
Police allege that a significant portion of investors' deposits, beyond Rs 3 crore disbursed as loans, was misappropriated.
Investor Concerns
Investors reported that monthly interest payments stopped three months prior to the discovery of the fraud, indicating a growing financial distress.
Discovery of Fraud
Official Statements
The fraud was uncovered when a staff member attempted a withdrawal and noticed irregularities, leading to a police probe.
Investor Concerns
Investors had been receiving regular interest payments until three months ago, suggesting the issues may have been ongoing or escalating before detection.
- Fraud Amount
- Rs 70 Crore
- Organization Involved
- Employees Provident Fund Organisation (EPFO) Staff Credit Co-operative Society
- Location
- Bengaluru
- Arrested Individuals
- Gopi (CEO), Lakshmi Jagadish (Employee)
- Fugitive Suspect
- Jagadish (Accountant)
- Society Age
- 61 years