ED attaches over Rs 84-cr assets of Kanva MD, family
New Delhi, Feb 27: The Enforcement Directorate has attached over Rs 84-crore worth assets in a money laundering probe linked to an alleged funds embezzlement case against a Karnataka-based cooperative society and its promoters, the central agency said Saturday.
The properties, provisionally attached under sections of the Prevention of Money Laundering Act (PMLA), include agricultural and non-agricultural land, buildings, residential flats and factories.
These assets are in the names of N Nanjundaiah (the director of Kanva Group of companies), his family members, some related entities and Harish S, the founder director and president of Sree Kanva Souhardha Co-Operative Credit Limited (SKSCCL).
The assets, worth a total Rs 84.40 crore, are located at Nelamangala, Koratagere, Chikkabalapur, Srirangapatana and Bengaluru in Karnataka and at Madakasira (Anantpur district) in Andhra Pradesh, the ED said in a statement.
Nanjundaiah was arrested from Bengaluru by the agency in this case in August last year. He is in judicial custody at present.
A chargesheet was subsequently filed by the ED before a special PMLA court in Bengaluru.
The ED case, under criminal sections of the PMLA, was filed after studying at least 3 FIRs filed by the Bengaluru Police and a complaint made by the Registrar of cooperative societies against Nanjundaiah and others.
It was alleged that the accused society and its promoters collected Rs 650 crore deposits from the members of public, assuring high rate of interest through commission agents, without maintaining required liquidity .
SKSCCL collected the amounts, through unauthorised collection centers and agents, from more than 1,3000 gullible investors by luring them to pay higher rate of interest (ranging from 12-15 per cent) but cheated them by not paying promised interest and not returning the principal amount even after the maturity, the ED alleged.
The money collected was embezzled and transferred to various accounts of Kanva group of companies and entities, in the accounts of the accused directors and their family members and some others related to SKSCCL.
The agency had earlier said that Nanjundaiah is the mastermind of the fraud that took place in the said society and had diverted more than Rs 180 crore funds to Kanva group of companies .
Loans of huge amount were sanctioned to dubious members of the society without proper surety and security that resulted into huge losses to the society and its bona fide members, the ED had alleged.
With the latest order, the total attachment in this case stands at Rs 339.57 crore.
ED attaches immovable assets worth Rs. 84.40 Crore belonging to N Nanjundaiah, his family members, Harish S & Kanva group of companies & entities situated at Bengaluru and Andhra Pradesh
— ED (@dir_ed) February 27, 2021
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Private bus operators in Karnataka to hike fares by 20-30 pc after fuel price rise
Bengaluru (PTI): In the wake of the hike in fuel prices, private bus operators have decided to increase fares by 20-30 per cent, depending on the route, effective from Friday midnight.
They have also called for government subsidies, a reduction in cess, and lower road taxes to improve the situation.
"The situation for bus owners in the state is already distressing due to high road tax and the impact of the Shakti scheme (free bus travel for women in government buses). On top of this, fuel prices have increased," Karnataka State Bus Owners’ Association President S Nataraj Sharma said.
"This will impose a burden of Rs 15,000 per vehicle per month on bus owners. If an owner has three buses, the burden will be Rs 45,000 to Rs 50,000 per month," he added.
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Speaking to reporters, he said the situation has made it inevitable for owners to increase fares by 20-30 per cent, depending on the route, under current conditions.
The increase may be roughly Rs 200 per seat, he added.
"For example, the current bus fare from Bengaluru to Belagavi is around Rs 1,000–Rs 1,200, which is likely to rise to Rs 1,350–Rs 1,400. Similarly, fares from Bengaluru to Mangaluru or Udupi currently range from Rs 900–Rs 1,000 and are expected to go up to Rs 1,100–Rs 1,200," he said.
Petrol and diesel prices were each hiked by Rs 3 per litre on Friday, the first rate increase in more than four years, amid mounting losses for fuel retailers due to surging global crude prices in the wake of the West Asia conflict.
The increase comes a couple of weeks after the Assembly elections concluded in Assam, Kerala, Tamil Nadu, West Bengal, and Puducherry.
