The Enforcement Directorate has arrested N. Nanjundaiah, director of Sree Kanva Souharda Co-operative Credit Limited, for alleged diversion of over ₹180 crore from the society’s funds.
The agency has got Mr. Nanjundaiah’s seven-day custody from a special court in Bengaluru. Its money laundering probe is based on three FIRs registered by the Bengaluru City police against the accused.
According to the ED, the accused had diverted the funds to the Kanva group of companies where he was one of the directors. Loans from the society’s accounts were also allegedly sanctioned to some dubious members without proper surety and security. It resulted in huge losses to the society and its bona fide members.
