The Enforcement Directorate has attached assets worth ₹84 crore in connection with the cheating case involving Sree Kanva Souhardha Co-operative Credit Limited (SKSCCL). Funds to the tune of ₹650 crore were collected from over 13,000 investors on the promise of phenomenal returns.
The properties in the form of land, buildings, factories and a residential flat belong to N. Nanjundaiah, a director of the Kanva Group of companies, his family members and related entities; and Harish S, founder director and president of SKSCCL. They are located at Nelamangala, Koratagere, Chikkabalapura, Srirangapatana and Bengaluru in Karnataka and Madakasira in Andhra Pradesh.
The ED probe is based on a complaint from the Office of the Registrar Cooperative Societies, Bengaluru and various FIRs alleging that the entity illegally collected funds through commission agents. It advanced loans out of the deposits, working capitals and shares reserves without getting any security, in alleged violation of rules.
It is alleged that the investors were promised returns at interest rates ranging from 12% to 15 %, but they did not even get back the principle amounts. The money was transferred to various accounts of the Kanva group entities and others associated with the SKSCCL. The funds were then invested in properties.
The agency had earlier conducted searches on the premises of Mr. Nanjundaiah and other directors of SKSCCL and the Kanva group of companies. He was arrested on August 25 last year and is currently in judicial custody. A charge sheet has also been filed. The total value of attachment in the case so far stands at ₹339.57 crore.