The Enforcement Directorate (ED) has issued a provisional attachment order under the Prevention of Money Laundering Act (PMLA) attaching assets worth Rs 255.17 crores in a case related to cheating of investors by Sree Kanva Souhardha
Co-Operative Credit Limited (SKSCCL), Benagluru and others through a Ponzi scheme.
The attached assets are in the form of immovable properties in Karnataka (agriculture and non-agriculture
land, buildings and resorts) and movable properties in the form of balances in bank accounts in the name of N Nanjundaiah and his family members, Kanva Group of companies and other entities, the agency said.
The accused advanced loans out of deposits, working capitals and shared reserves without getting any security and not following existing Rules and Regulations, it said.
Searches under PMLA were conducted in the premises of the accused N Nanjundaiah and other Directors of SKSCCL and Kanva group of companies which resulted in seizure of incriminating documents.
N Nanjundaiah was arrested on August 25 and is now undergoing judicial custody.
“Investigation conducted under PMLA so far has revealed that N Nanjundaiah, founder/ common Director of Sree Kanva Souhardha
Co-operative Credit Limited and Kanva Group of companies collected Rs 650 crores through unauthorised collection centres and collection agents from about 13,000
gullible investors by luring them to pay higher rate of interest (from 12 to 15 percent),” it further said.