BENGALURU: Following complaints of cheating by investors, the Managing Director of Sree Kanva Souhardha Co-Operative Credit Limited N Nanjundaiah has been arrested by the Basaveshwara Nagar police. The investigation revealed that the society has to pay Rs 33 crore to its investors. The police have registered three FIRs based on the complaints filed. Police said that Nanjundaiah was arrested late on Thursday night, after several investors approached the police stating that the accused had cheated them.
Before producing him before court, which remanded him to judicial custody, the police grilled Nanjundaiah for several hours. The police will request the court for his custody on Monday.During questioning, Nanjundaiah told the police that the society was in financial distress as it diverted the investments to other businesses.
He is said to have produced documents related to the properties owned by Kanva Group, which are estimated to be around Rs 700 crore. Besides, the society has to recover loans worth more than Rs 100 crore. “He said that he will ensure the investors get their money back by recovering the loans that the society had given to its members or by selling some of its properties,” an investigating officer said. It is learnt that the society has a turnover of Rs 511 crore annually.
“So far, three investors have filed complaints. While one investor needs to get Rs 15 lakh, two others have to get Rs 15 lakh together. The number of complaints may have increased,” the police added.On Thursday, around 30 investors gathered outside the society’s head office on West of Chord Road in Rajajinagar alleging that the firm cheated them. It was alleged that the society had stopped paying the principal amount and the interest for the past three months.