New Delhi, Feb 23 : The Enforcement Directorate (ED) has arrested one Rajesh V.R in the case of Sri Guru Raghavendra Sahakara Bank Niyamitha pertaining to mis-appropriation of pubic deposits of more than Rs 1000 crore. The ED said that Rajesh is the major beneficiary of the fund siphoned off from the bank in connivance with the management of the bank. "As per the RBI's Inspection report, he has availed loans of Rs 40.40 crore from the bank and has not repaid the same. It is also noticed during investigation that there are multiple FIRS against Rajesh VR and his wife in case of public frauds committed by them in other cooperative banks/societies also. Hence, they are habitual offenders," the ED said. Earlier, an ECIR was lodged by the ED based on the basis of FIR registered under various sections of IPC and under section 9 of Karnataka Protection of Interest Depositors in Financial Establishments Act, by Bengaluru Police against the Bank and others. During the investigation under PMLA, it was revealed that the said Bank promised to give a higher interest rate to the depositors which was not in line with the prevailing market rate. The bank officers created fictitious loan accounts and transferred the money to these accounts (without proper scrutiny of the loans) which in turn was transferred to overdue loan accounts for evergreening purposes to show strong financial health of the Bank. Earlier, the Enforcement Directorate has attached movable and immovable properties belonging to the accused persons valuing to Rs 45.32 crore. The Principal City Civil and Sessions Judge, Bangalore has granted three days' ED custody of the arrestee. Further investigation in the case is in progress. /IANS