BENGALURU: The Enforcement Directorate (ED) on Tuesday arrested MD of Sree Kanva Souhardha Cooperative Credit Ltd N Nanjundaiah under the Prevention of Money Laundering Act (PMLA), sources said.
“Nanjundaiah was produced before the PMLA Court in Bengaluru on Wednesday and remanded to ED custody for seven days,” said an officer. Nanjundaiah has reportedly diverted deposits of around `200 crore from Kanva Souhardha to his personal companies.
“He had also given loans to some dubious people without obtaining securities, which it failed to recover. It had hired agents at huge commissions, who in turn lured gullible people from the City and Kolar, Tumakaru and Chikkaballapur to invest in the firm, on the promise of high interest between 12% and 16%,” said the officer, adding that the ED would investigate the proceeds of crime, and “attach some of Nanjundaiah’s personal assets under the PMLA”.