Daijiworld Media Network - Bengaluru (SP) 

Bengaluru, Nov 2: It has been reported that following in the lines of IMA multi-crore scam, another similar scam has happened in Kanva Souharda Cooperative Credit Ltd. It is said that the society has not repaid the principal and interest to the depositors. 

After more than ten persons complained to them, Basaveshwara Nagar police arrested the managing director of the concern, Nanjundayya. 

It is said that the society lured customers by enticing them with the offer of high interest rates. Thousands of people invested their hard-earned money in the society. Most of them used to get interest promptly but of late, repayment of both interest and principal had stopped, said over 30 persons who held protest in front of the office of Kanva Souharda Cooperative Credit Ltd office at West of Chord Road, Rajajinagar. 

The police went to the spot and asked the protesters to file written complaints. It is said that some of the protesters went home, relying on the promise made by the employees of the concern about repayment of their money. There have been complaints about non-payment of maturity amount of the deposits, and bill towards supply of clothes procured by the society amounting to eight lac rupees. 

A number of concerns like Kanva Developers, Kanva Group, Kanva Tours and Travels, Kanva Star Resorts etc are being run by the people concerned. Deputy commissioner of police, Ramesh Bhanot, said that a report has been lodged and investigation has begun. He added that the people in the management of the concern are being questioned. 

In the meanwhile, legal advisor to the group, Mohan, through a press release, stated that Kanva has been functioning since the year 1999 and has employed hundreds of people besides paying taxes to the tune of crores of rupees. He explained that the group has granted loans against enough securities and therefore is able to meet its financial commitments, "Just like the entire country, we too have been affected by demonetization move and there is liquidation problem. The borrowers are temporarily facing problem in repaying in the loan, and we assure the depositors that their money is safe, he added.