New Delhi/ Bengaluru: A director of a Karnataka-based cooperative society has been arrested by the Enforcement Directorate (ED) in Bangalore on money laundering charges, the central agency said on Thursday, August 27.
“The man, N Nanjundaiah, was arrested by the agency under sections of the Prevention of Money Laundering Act (PMLA) on Wednesday and he was produced before a local court that sent him to ED custody till September 1,” it said.
“Nanjundaiah is the director of the Sree Kanva Souharda Co-operative Credit Limited,” it said.
“The arrest has been made in connection with a money-laundering probe linked to alleged “embezzlement” of the funds of the society,” it said.
The PMLA case has been filed on the basis of three FIRs filed by the Bangalore Police against Nanjundaiah in the past.
“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 where he was one of the directors. Also, loans of huge amounts were sanctioned to dubious members of the society without proper surety and security that resulted in huge losses to the society and its bona fide members,” the ED alleged in a statement issued here.