BENGALURU: The Directorate of Enforcement (ED), Mangaluru sub-zonal office, filed a Prosecution Complaint (PC) on December 16 before the Special Court (Prevention of Money Laundering Act), Mangaluru, against Yallappa Sham Mangutkar, Shivanand Dadu Kumbhar and Tanaji Sham Mangutkar, under the PMLA, 2002, for allegedly cheating multiple investors in Belagavi.
The ED, in an official release on Wednesday, stated that the agency initiated investigation on the basis of FIRs registered by Cybercrime, Economic Offences & Narcotic crime police station, Belagavi city, under Sections 406 and 420 of the erstwhile Indian Penal Code, 1860, against Kumbhar and Mangutkar.
“The ED investigation revealed that the main accused, Yallappa Sham Mangutkar and Shivanand Dadu Kumbhar, with the aid of Tanaji Sham Mangutkar, had mobilised around Rs 31.09 crore from multiple investors based in Belagavi, purportedly for utilizing the same in Kumbhar’s steel and cement business, by promising an exorbitant rate of interest of up to 8% per month,” the central agency stated.
“Investigation has revealed that the accused persons mobilised funds from investors largely through cash mode.
They cheated them by defaulting on promised interest and capital repayments. The funds thus mobilised by the accused from investors through their bank accounts have mostly been utilised for personal purposes,” added the ED.