CMD of Kanva group of companies arrested

He has been booked for cheating investors

The Basaveshwara Nagar police have arrested the chairman and managing director of the Kanva Group of companies after investors of Sree Kanva Souharda Co-Operative Credit Ltd. claimed to have been duped of several lakhs of rupees.

According to the police, three people, including a 62-year-old man, had filed complaints against the CMD, Nanjundaiah, claiming that the co-operative society had refused to return their investments.

Another complainant, Gopal Byatappa, claimed to have invested his post-retirement benefit of ₹16.5 lakh in 2018 when the co-operative society offered 12.6% returns on fixed deposits, but has not got his money back.

As news spread, hundreds of anxious depositors had gathered outside the office on Thursday to withdraw their deposits.

The company reportedly clarified with the police that the cooperative society is financially stable, and that the anxiety among depositors was unwarranted. “Company officials claim that this situation has been caused by depositors wanting to break their fixed deposits before maturity,” said the police.

The police have arrested Nanjundaiah for cheating. He was remanded in judicial custody.

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Printable version | Feb 28, 2020 2:24:18 AM |

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