'Give us justice', Kanva cooperative scam victims protest in Bengaluru

After the scam was revealed, SKSCCL closed all its branches and stopped operations. This meant the victims, around 13,000 depositors, had no ways to retrieve their money.
Depositors protesting asking government to take action
Depositors protesting asking government to take action
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On Friday, several people, many of them elderly citizens, gathered at the Mysore Bank circle in Bengaluru city to protest against the lack of action to help victims of the Kanva scam that came to light in November 2019. Sree Kanva Souharda Co-Operative Credit Limited (SKSCCL) which had offered 12%-15% interest to depositors stopped providing the interest last year. When the depositors demanded their money back the MD declared that he had no money to pay them. After several depositors lodged complaints against the MD of SKSCCL, the Basaveshwara Nagar police had arrested him.  

The protestors were part of Shree Kanva Souharda Depositors Welfare Association (SKSDWA), an association formed by the victims of the scam. Most of them had hoped to make a decent living from the interest accrued through their deposits. Many have invested their entire life savings and are on the verge of bankruptcy.

“I have lost Rs 20 Lakh in the scam. We have gathered to demand the government take necessary action against Nanjundaiah, the MD of Sri Kanva Souharda Co-Operative Credit Limited). The government should give us justice.” Said V Shankaragolla, Treasurer, SKSDWA.

He further added, “The victims as you can see are mostly elderly citizens. Nearly 30 of them have already passed away and many are in a very bad position.”

The MD had claimed that as his debtors were majorly small business people like street vendors, they had not been able to repay due to demonitisation and hence his business suffered. The Enforcement Directorate however has said that over Rs 400 crore was swindled and much of this money was diverted and advanced as loans to the Kanva Group, also owned by Nanjundaiah. The ED also said that these funds were used by the entity to buy a large number of assets in Nanjundaiah's name and in the names of his family members.

After the scam was revealed, SKSCCL closed all its branches and stopped operations. This meant the victims, around 13,000 depositors, had no ways to retrieve their money.

The Karnataka Government in 2020 invoked the Karnataka Protection of Interest of Depositors Act and appointed a ‘Competent Authority’ to look into the matter. Further, The Enforcement Directorate (ED) attached assets worth over 200 crore of SKSCCL.

The protestors alleged that the Competent Authority along with several others were changed recently and the work was progressing at a slow rate. Many of the depositors are worried that the company will have more time to destroy records and siphon the money to their other businesses, if the process is delayed further.

“Kanva has several businesses from hospitals to clothes marts. The pace at which this investigation is going, many more victims will die without getting justice. This MD is roaming scottfree without any consequences. If the investigation is slow he(the MD) gets more time to destroy evidence and also remove or transfer assets to his other business. Then whatever we do, absolutely nothing can be done to recover the money.” said B Gopalakrishna Reddy, General Secretary of SKSDWA.

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