Enforcement Directorate (ED) has issued Provisional Attachment order under the provisions of the Prevention of Money Laundering Act, 2002 (PMLA) attaching immovable assets (Agriculture & non -Agriculture land, Buildings, Residential flat and Factories)worth Rs 84.40 Crore in the name of N Nanjundaiah(director of Kanva Group of companies) & in his family members and related entities and Harish S, Founder Director, and President of M/s SreeKanvaSouhardha Co-Operative Credit Limited (SKSCCL for brevity). These assets are situated at Nelamangala, Koratagere, Chikkabalapura, Srirangapatana and Bengaluru in Karnataka and at Madakasira in Andhra Pradesh.
ED initiated investigation on the basis ofcomplaint received from the Office of the Registrar Cooperative Societies, Bangalore and various registered FIRs wherein it was alleged that the entity has collected Rs. 650 crore deposits from the members of public, assuring high rate of interest through commission agents, without maintaining required liquidity. That the said entity has advanced loans out of deposits, working capitals, shares reserves etc without getting any security and not following existing Rules and Regulations. It has not maintained any proper accounts.
The searches have been conducted under the PMLA in the premises of N Nanjundaiah and other Directors of the M/s SreeKanvaSouhardha Co-operative Credit Limited &Kanva group of companies and incriminating documents were seized.N Nanjundaiah was arrested on 25.08.2020 and he is still in Judicial Custody. Prosecution Complaint was filed on 22.10.2020 before the court of Principal City Civil & Sessions Judge, Bangalore City, Bangalore (CCH-34).
SKSCCL collected the amountsthroughunauthorized collection centers & collection agent from more than 13000 gullible investors by luring them to pay higher rate of interest (from 12 to 15 %) butcheated them by not paying promised interest and not returning the principle amount even after the maturity. The collected money was embezzled and transferred to various accounts of Kanva group of companies &entities, in the account of aforesaid directors and their family member’s accounts and other persons related to the SKSCCL and from the siphoned money they had acquired than immovable and movable properties in their name and in the name of their family members and entities owned by them.
Accordingly, identified assets to the tune of Rs84.40 Crore have been provisionally attached under PMLA.
Previously, assets (movable and immovable properties) to the tune of Rs 255.17 Crore including accrued interest on the amount have been provisionally attached under PMLA; in total, provisionally attached assets in the case are Rs 339.57 Crore.
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