ED attaches assets worth Rs 84.4 crore belonging to Kanva group

The Enforcement Directorate (ED) has attached Rs 84.4 crore worth of immovable properties in the money laundering case against the Bengaluru-based Kanva group of
companies.

Sree Kanva Souhardha Co-Operative Credit Limited (SKSCCL) is accused of collecting Rs 650 crore from 13,000 investors through unauthorised collection centres and commission agents by promising annual returns of 12%-15%. But it neither paid the interest nor the principal even after maturity, according to investigators.

The money was siphoned off and transferred to various bank accounts of the Kanva group of companies and entities. The money was subsequently used to acquire immovable and movable properties, investigators said.

The entity also advanced loans from the deposits, working capital and share reserves without getting any collateral or following the rules and regulations. It didn’t maintain the required liquidity or proper accounts either, investigators said.

A number of FIRs were registered in the case, and police arrested N Nanjundaiah, the director of the Kanva group of companies, on August 25, 2020. He continues to be in jail.

The ED, a central government agency, started an investigation after receiving complaints from the office of the registrar of cooperative societies.

It subsequently searched the premises of Nanjundaiah and other directors of the SKSCCL and the Kanva group of companies, and seized the documents.

It has identified assets to the tune of Rs 84.4 crore and attached them provisionally under the Prevention of Money Laundering Act, 2002. The properties include agricultural and non-agricultural land, buildings, a flat and factories. They are in the name of Nanjundaiah, his family, related entities and Harish S, founder director and president of the SKSCCL. Besides Bengaluru, the properties are located at Nelamangala, Koratagere, Chikkabalapura, Srirangapatana and Madakasira (Andhra Pradesh).

This is the second time that the ED has attached properties in the Kanva case. It had earlier attached assets to the tune of Rs 255.17 crore, including accrued interest on the amount. In total, Rs 339.57 crore worth of properties have been provisionally attached in the case so far.