ED Attaches ₹1.66 Crore Assets in Harsha Entertainment Case; LIC Policies and Land Linked to Proceeds of Crime

Key Facts and Findings

The Directorate of Enforcement (ED), Mangalore Sub Zonal Office, has provisionally attached assets worth approximately ₹1.66 crore under Section 5 of the Prevention of Money Laundering Act, 2002, in connection with its investigation into M/s Harsha Entertainment Pvt Ltd and related entities.

The attachment, carried out on 23 March 2026, includes agricultural land and LIC policies held in the names of Hariprasad Jayanna and Gajanana Wadeyar. The action stems from a predicate FIR registered in April 2017 by Kalaghatagi Police Station, Dharwad, against Satyabodha Khasnis (also known as Harsha), Sanjeev Khasnis, Shreekanth Khasnis, and others for allegedly collecting funds from investors by promising high returns and subsequently defaulting.

According to the ED, the accused mobilised public funds between FY 2009–10 and 2016–17 through entities including M/s Harsha Life Light and M/s Harsha Entertainment Pvt Ltd. Investors were promised returns ranging from 4% to 6% per month. The total default to investors is estimated at approximately ₹22.58 crore.

The investigation revealed that the collected funds were diverted for purposes including stock market trading, film production, and other unexplained uses. It was further found that film director Pavan Kumar utilised part of the funds received from the accused to purchase LIC policies in the name of his father, Gajanana Wadeyar, valued at ₹1.31 crore.

Similarly, another film director, Hariprasad Jayanna, allegedly received funds in cash and utilised them for unexplained purposes, leading to attachment of immovable property worth approximately ₹35 lakh in his name.

The ED has treated these assets as proceeds of crime linked to the alleged fraudulent investment scheme. Further investigation in the matter is ongoing.