#JustIn: Bengaluru Police Arrest EPFO Co-op Officials in ₹70-Crore Fraud

Bengaluru Police arrest two senior officials of the Employees Provident Fund Organisation (EPFO) Staff Credit Co-operative Society today in a staggering ₹70 crore fraud that has left hundreds of serving and retired government employees financially devastated. The accused—Chief Executive Officer Gopi and employee Lakshmi Jagadish—allegedly orchestrated a systematic misappropriation of fixed deposits entrusted to the society over decades. Established 61 years ago exclusively for EPFO staff, the cooperative had earned unwavering trust by consistently paying monthly interest until the payments suddenly halted three months ago, sparking widespread panic among investors.

The scam came to light when a vigilant staff member attempted to withdraw funds and discovered massive irregularities in the society’s accounts. A preliminary probe revealed that while only ₹3 crore had been disbursed as legitimate loans, the remaining bulk of the deposits had been siphoned off through unauthorized channels. Investigators suspect forged documents, fabricated loan approvals, and internal collusion enabled the duo to divert funds undetected for years. The society’s board, comprising senior EPFO officials, is now under scrutiny for failing to conduct regular audits despite handling such large sums.

Police raids on the accused’s residences and offices yielded crucial evidence, including multiple luxury vehicles—Mercedes, BMW, and Audi models—purchased with embezzled funds. Bank statements and digital trails are being analyzed by cyber forensics teams to trace the money trail. A third key suspect, accountant Jagadish, who allegedly cooked the books to conceal the fraud, remains absconding. Special police teams have been dispatched across Karnataka and neighboring states, with his phone records and financial transactions under surveillance.

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The fraud has triggered outrage among EPFO employees, many of whom invested their entire retirement savings in the society for higher interest rates than banks. Several retirees have reported being unable to meet medical expenses or repay loans taken against their FDs. The EPFO headquarters in Delhi has ordered an independent inquiry and assured depositors of government intervention to recover funds. Meanwhile, the arrested duo has been remanded to 14-day judicial custody, with more arrests expected as the investigation widens.

This case exposes serious vulnerabilities in cooperative societies linked to government institutions, raising questions about regulatory oversight and internal controls. The Karnataka Cooperative Department has announced statewide audits of similar societies, while affected employees demand immediate compensation and strict action against all involved. As the probe deepens, the EPFO fraud serves as a stark reminder that even trusted institutions can collapse under greed and betrayal.

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