The Enforcement Directorate (ED) on Wednesday arrested Anand Balakrishna Appugol, the chairman of Krantiveer Sangolli Rayanna Urban Co-operative Credit Society, Belagavi, over a Rs 250-crore scam.
The central agency had launched an investigation under the Prevention of Money Laundering Act on the basis of an FIR registered against Appugol and 15 others at the Khade Bazar police station in Belagavi.
According to officials, the co-op had collected deposits of about Rs 250 crore until March 2017 from over 26,000 people by promising them high returns. But it instead spent the money on buying immovable and movable properties, thereby causing huge losses to the depositors. It committed a breach of trust and cheated the public at large, officials said.
On Thursday, the special court for PMLA cases in Bengaluru remanded Appugol in ED custody for seven days.
Watch the latest DH Videos here: