Bengaluru : The managing director of a credit cooperative company here was arrested on Friday on charges of duping its investors to the tune of lakhs of rupees, police said.

N Nanjundaiah, who ran the Kanva Souharda Cooperative Credit Limited, was arrested following complaints from investors.

One of the complainants, Gopal claimed he had deposited Rs 16.5 lakh as fixed deposit with the company, which had promised him to give an interest of 12.6 per cent per annum.

Accordingly, the investor was expecting about Rs one lakh from the company per annum but it did not give him any amount, the complaint said.

When Gopal inquired with Nanjundaiah, he expressed his inability to pay him the money, police said.

The company has collected money from a sizeable number of investors.