Date:27/07/2005 URL: http://www.thehindu.com/2005/07/27/stories/2005072721030300.htm

Karnataka - Bangalore

Police teams to probe finance rackets

Staff Reporter

Special cells have been set up in the central, east and west zones of the city

Investigation has been started based on preliminary inquiries into large monetary transactions by firms
5,800 complaints against Viniv Inc.
None of 2,500 investors has complained against invesTech, Domlur

Police searching for a religious leader connected with Yoga Foundation

BANGALORE: The Bangalore Police Commissioner, Ajai Kumar Singh, said here on Tuesday that special cells have been created in the central, east and west zones of the city to look into complaints from persons who deposited large sums with certain finance firms. In some cases, the police have also started investigation without any complaints, based on preliminary inquiries into large monetary transactions by firms, he added.

On Monday, one of the directors of Viniv Inc. Souharda Cooperative, D.S. Krishnamurthy, surrendered to the police. Six directors of the company are now in judicial custody.

In the case of Viniv Inc, the finance firm which allegedly indulged in "money doubling," the Central police station has registered 5,800 complaints from depositors, Dr. Singh said. The fraud may amount to Rs. 76.23 crores. "In the case of another firm, invesTech of Domlur, despite there being 2,500 investors, no one has yet come to the police,'' he said.

Many depositors had crowded its offices soon after news of Viniv Inc. having been given money by invesTech spread and the police made a visit to the Domlur office of the company. The police said they were acting on information that invesTech was promising an interest rate much higher than that prescribed by the Reserve Bank of India.

Yoga Foundation

The police have taken action against a firm which promised people to double deposits — the Nagarbhavi-based Yoga Foundation. A team from Gnanabharati police station are searching for a religious leader connected with the firm but have been unable to trace him. His ashram on Magadi Road was searched.

Darshanika Foundation

The Police Commissioner said he has no information about any police personnel keeping a watch on N.V. Krishnamurthy, president of the Shankarapuram- based Darshanika Foundation.

Surveillance

However, Mr. Krishnamurthy told presspersons on Tuesday that the police have kept him under surveillance. "Neither myself nor the foundation's secretary P. Rajendra are absconding,'' he said.

"All financial details about the foundation's activities have been furnished to the High Court of Karnataka, and we are prepared to return all deposits. Our main activity is to help the disabled and rural poor,'' Mr. Krishnamurthy said.

He deplored the manhandling of two TV crews who went to the foundation's office on July 16.