Probe Company Attaches Property Value Rs 84 Crore Of Kanva Group Promoters

Probe Agency Attaches Assets Worth Rs 84 Crore Of Kanva Group Promoters

With the newest order, the full attachment on this case stands at Rs 339.57 crore.

New Delhi:

The Enforcement Directorate has connected property value over Rs 84 crore in a cash laundering probe linked to an alleged funds embezzlement case in opposition to a Karnataka-based cooperative society and its promoters, the central company mentioned Saturday.

The properties, provisionally connected below sections of the Prevention of Cash Laundering Act (PMLA), embrace agricultural and non-agricultural land, buildings, residential flats and factories.

These property are within the names of N Nanjundaiah, the director of Kanva Group of corporations, his members of the family, some associated entities and Harish S, the founder director and president of Sree Kanva Souhardha Co-Operative Credit score Restricted (SKSCCL).

The property, value a complete Rs 84.40 crore, are situated at Nelamangala, Koratagere, Chikkabalapur, Srirangapatana and Bengaluru in Karnataka and at Madakasira, Anantpur district in Andhra Pradesh, the ED mentioned in a press release.

Nanjundaiah was arrested from Bengaluru by the company on this case in August final 12 months. He’s in judicial custody at current.

A chargesheet was subsequently filed by the ED earlier than a particular PMLA court docket in Bengaluru.

The ED case, below legal sections of the PMLA, was filed after learning at the least 3 FIRs filed by the Bengaluru Police and a criticism made by the Registrar of cooperative societies in opposition to Nanjundaiah and others.

It was alleged that the accused society and its promoters “collected Rs 650 crore deposits from the members of public, assuring excessive fee of curiosity via fee brokers, with out sustaining required liquidity”.

“SKSCCL collected the quantities, via unauthorised assortment facilities and brokers, from greater than 1,3000 gullible traders by luring them to pay greater fee of curiosity (starting from 12-15 per cent) however cheated them by not paying promised curiosity and never returning the principal quantity even after the maturity,” the ED alleged.

The cash collected was “embezzled” and transferred to numerous accounts of Kanva group of corporations and entities, within the accounts of the accused administrators and their members of the family and a few others associated to SKSCCL.

The company had earlier mentioned that “Nanjundaiah is the mastermind of the fraud that came about within the mentioned society and had diverted greater than Rs 180 crore funds to Kanva group of corporations”.

“Loans of big quantity had been sanctioned to doubtful members of the society with out correct surety and safety that resulted into large losses to the society and its bona fide members,” the ED had alleged.

With the newest order, the full attachment on this case stands at Rs 339.57 crore.

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