The state government has issued orders for attaching properties of AgriGold and Maithri Plantation and Horticulture companies for duping people by promising high interest rates on deposits, Law Minister T B Jayachandra said on Tuesday. Speaking to reporters after holding a meeting with Law Department officials, Jayachandra said Revenue Department officials will be told that the properties be attached within 15 days.
He said the two companies operated especially in rural areas three years ago luring gullible people with high rate of interest on deposits. According to official sources, they had collected around Rs 500 crore especially in Tumakuru, Raichur and Kolar districts. Following several complaints against the companies, the case was handed over to the CID.
The companies also operated in Kerala and Andhra Pradesh. The government intends to return the deposits to the people by attaching the properties he said. Letters have been written to chief secretaries of Telangana, Andhra Pradesh and Kerala in this regard, he added.
Jayachandra said the companies had utilised the most of the deposits collected from Karnataka to purchase land in Kerala. The managing directors of the companies are absconding. He added that the Centre should bring in a law to curb financial frauds by such companies. Jayachandra, who also holds the Minor Irrigation portfolio, said Rs 100 crore has been earmarked for rejuvenation of five lakes in every Assembly constituency across Karnataka.
Published 16 May 2017, 19:55 IST