ED arrests president of cooperative society in Karnataka

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The Law Enforcement (ED) Directorate announced on Thursday that it had arrested the chairman of a Belagavi-based credit union society in connection with a money laundering case linked to the alleged deception of depositors of Rs 250 crore.

Anand Balakrishna Appugol, the chairman of Kritiveer Sangolli Rayanna Urban Cooperative Credit Society of Karnataka, was arrested on Wednesday, the agency said in a statement.

He was brought before a special Prevention of Money Laundering Act (PMLA) court in Bangalore on Thursday, which sent him to seven days in emergency detention, he said.

Prima facie, the ED said, an investigation revealed that the company had collected around Rs 250 crore up to March 2017 from over 26,000 people on the promise that their money would be returned with a high rate of interest. .

“However, the company failed to return the money to public depositors on time and committed a breach of trust and misled the general public,” he alleged.

Funds from the company were “sinked” in the form of real estate and movables, resulting in huge losses for depositors, he said.

The agency’s case was filed after studying an FIR by Belagavi police against Appugol and 15 others.

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