Bengaluru: DH News Service May 17 2017, 1:25 IST
Law Minister T B Jayachandra. File photo
He said the two companies operated especially in rural areas three years ago luring gullible people with high rate of interest on deposits. According to official sources, they had collected around Rs 500 crore especially in Tumakuru, Raichur and Kolar districts. Following several complaints against the companies, the case was handed over to the CID.
The companies also operated in Kerala and Andhra Pradesh. The government intends to return the deposits to the people by attaching the properties he said. Letters have been written to chief secretaries of Telangana, Andhra Pradesh and Kerala in this regard, he added.
Jayachandra said the companies had utilised the most of the deposits collected from Karnataka to purchase land in Kerala. The managing directors of the companies are absconding. He added that the Centre should bring in a law to curb financial frauds by such companies. Jayachandra, who also holds the Minor Irrigation portfolio, said Rs 100 crore has been earmarked for rejuvenation of five lakes in every Assembly constituency across Karnataka.