Bengaluru court rejects plea to release Kanva Group's seized assets

A special court in Bengaluru has dismissed an application seeking directions to the Directorate of Enforcement to release 95 immovable properties and four bank accounts belonging to Sri Kanva Souhardha Credit Co-operative Limited and Kanva Group of Companies. The assets were provisionally attached in 2020 and 2021.

The Kanva entities had collected approximately Rs 650 crore from 21,000 depositors but defaulted on repayment. The statutory authority appointed under the Karnataka Protection of Interest of Depositors in Financial Establishments Act had filed the application seeking release of the assets.

The court noted that while it recognizes the plight of depositors and the statutory purpose of protecting them, it must ensure proper procedure under the Prevention of Money Laundering Act is followed. The judge ruled that the applicants had not established the statutory basis for granting relief.