Belagavi police arrested Anand Appugol, chairman of the Sangolli Rayanna Cooperative Society, on charges of failing to repay money to depositors.
His depositors have alleged that he has swindled money to the tune of ₹300 crore.
Some depositors had held protests rallies in the last few months, asking the government to ensure that they got their money back.
A special team arrested him near Mumbai and brought him back to Belagavi. He was produced in court on Monday and was remanded to police custody for four days, police sources said.
Two months ago, when pressure mounted on him to return matured deposits, he had sought time. He broke down in a press conference and said that he had suffered losses due to demonetisation and the RBI’s delay in allowing cooperative societies to exchange old currency notes. He also claimed he would return all the money to depositors in a few months. He had said his intentions were noble and he never wanted to cheat. But within weeks, he went absconding.
Based on petitions by depositors, the State government ordered an inquiry into the affairs of the society. Registrar of cooperative societies submitted a detailed report on September 3 and indicted Mr. Appugol for breach of trust, violation of provisions of the Cooperative Act among other things.
Mr. Appugol was known for his flashy lifestyle, including owning fancy cars and rubbing shoulders with film stars. A few years ago, he produced the successful Kannada film Sangolli Rayanna , based on fables of eponymous lieutenant of Kittur Rani Channamma.
In 2013, Mr. Appugol’s name was among the few recommended for a honorary doctorate by the Karnataka University, Dharwad, for “yeomen service in the field of cooperation.” However, the Governor rejected his name after some syndicate members objected to this decision and sent some documents to the Raj Bhavan.
