Chairman of Krantiveer Sangolli Rayanna Urban Cooperative Credit Society, Belagavi, and film producer Anand Balakrishna Appugol, who was arrested on Wednesday, was granted custody by court for seven days to the Enforcement Directorate on Thursday.
According to a press release issued by Enforcement Directorate, Mr. Appugol was arrested under provisions of Money Laundering Act 2002 in a case of cheating the public of ₹250 crore.
The Enforcement Directorate initiated investigation in the money laundering case against Mr. Appugol and 15 others on the basis of an FIR registered by Khade Bazaar Police in Belagavi under Sections 406, 408 and 420 of IPC.
According to the release, investigation revealed that the society had collected ₹250 crore of deposits till March 2017 from more than 26,000 people promising them high interest. However, the society failed to return the money to the depositors in time thereby cheating them. According to the investigation, the funds of the society were misused for purchasing movable and immovable property causing huge loss to the depositors.
The Enforcement Directorate, after arresting Mr. Appugol, produced him before the City Civil and Sessions Judge and Special Judge for PMLA cases in Bengaluru. The judge remanded the accused in Enforcement Directorate custody for seven days, the release said.
Mr. Appugol was earlier arrested by Belagavi Police in connection with cases of cheating. Known for his flamboyant lifestyle, Mr. Appugol had produced the hit Kannada film Krantiveer Sangolli Rayanna.
