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Another IMA? Kanva Souhardha puts investors in the lurch

Many of them have not been paid interest for the last three months

Published: 01st November 2019 06:43 AM  |   Last Updated: 01st November 2019 06:43 AM   |  A+A-

Investors gather outside the Sree Kanva Souhardha Co-Operative Credit Ltd head office in Rajajinagar on Thursday | Shriram B N

Express News Service

BENGALURU: In what appears to be another IMA-like multi-crore fraud, Sree Kanva Souhardha Co-Operative Credit Ltd has allegedly cheated its investors of several crores. Following non-payment of interest, at least 30 investors gathered outside its head office on West of Chord Road in Rajajinagar on Thursday and also lodged a police complaint.

Kanva Group runs businesses like Kanva Developers, Kanva Fashion Ltd, Kanva Tours and Travels and Kanva Star Resort. It allegedly stopped paying principal amount and the interest for the last three months and this resulted in depositors venting their ire on the firm staff.

Around 30 investors came to the firm on Thursday to check the status of payment but were reportedly told by the firm staffers to come back next month for the payment. A heated argument ensued, after which staffers locked down the office by noon. Later, the investors filed a complaint with Basaveshwara Nagar police.

Vicky, who invested Rs 18 lakh as fixed deposit with the firm, said he had invested in 2016 at an interest rate of 12.6 per cent. “I have not been paid the interest for the last three months. I have been checking with them but they give lame reasons. I have been asking them to at least return the principal amount but they are not responding positively.”

He added that the firm had various investment schemes. “They offered returns ranging from 12-18 per cent annually under various schemes.”

K N Aprameya, an insurance agent and a resident of Nelamangala, said he had invested Rs 50,000 in 2014 and was supposed to get double the amount (Rs 1 lakh) in five years. “I was supposed to get it this April, but they keep giving excuses. I had an emergency, so I pledged gold ornaments thinking that I can get it back once I get money from Kanva. But now it looks like my money is gone.”

Many have reportedly invested crores in the firm but they are still unaware that they have been cheated. The firm’s Managing Director N Nanjundaiah has allegedly not paid several vendors.

Murthy, a fabric vendor, said, “They owe me Rs 8 lakh. I used to supply fabric for Kanva Fashions Ltd but they held my payments since the beginning. Last month, the garment factory in Koratagere, Tumakuru, was shut down. I heard that he has not even paid his employees the PF. There are at least 30 other vendors who are waiting for their payments.”

The investors are hoping that the government intervenes and returns their money by selling off hundreds of acres of land belonging to Nanjundaiah and the firm in Tumakuru, Nelamangala, Mandya and other places.

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  • Rajesh

    I think it is high time the government make people's money safe by at least checking the authenticity of the cooperative banks
    9 months ago reply
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