‘Finance firm duped 20 Lakh investors’

EOW arrests 1, on lookout for 5 in scam that is estimated to be worth Rs 2,000 crore

The Economic Offences Wing (EOW) of the city police has arrested the managing director of a private firm that has allegedly duped 20 lakh investors to the tune of Rs 2,000 crore through their ponzi schemes or a fraudulent investment operation.

The firm was operating across India since 2001 and the EOW fear it has parked crores overseas. About Rs 74 crore has been recovered till now. Five cases have already been registered against the same firms in Rajasthan, Chhattisgarh, Madhya Pradesh and one by CBI since last year.

The FIR has been registered with the Bandra-Kurla Complex police on Wednesday by Securities and Exchange Board of India (SEBI) against M/s. Sai Prasad Properties Ltd.-Goa (M/s. SPPL), M/s. Sai Prasad Foods Ltd.– Pune (M/s. SPFL), their directors and office bearers on charges of cheating, criminal beach of trust and criminal conspiracy of IPC and under the Prize Chits and Money Circulation (Banning) Act. The accused company had, to avoid scrutiny of SEBI knowingly, refrained from obtaining the mandatory registration certificate under the SEBI Act and SEBI (Collective Investment Schemes) Regulations, 1999, the FIR said. The firms had 11 sister concerns, it said.

Balasaheb Bhapkar (56), a B Com graduate from Pune, has been arrested and five more are wanted. The EOW conducted search operations in 27 offices and three residential places in six states namely, Maharashtra, Madhya Pradesh, Uttar Pradesh, Rajasthan, Delhi and Goa freezing 192 bank accounts in 15 banks. The SEBI had passed orders on January 14 this year against both the companies directing them to wind up their existing schemes and make repayments to the investors but the accused didn’t comply with it and continued with the schemes.

EOW chief, joint commissioner Dhananjay Kamlakar, said, “The firm/s did not have RBI or SEBI compliance. Any investor should first find out if the firm he/she is investing is in compliance with SEBI and RBI. We appeal to all the investors in the accused firms to come forward and record their statements with us.”

EOW DCP Pravin Padwal said, “They have 54 properties which includes 1,600 acres of agricultural land. These properties are in Pune, Nashik, Ratnagiri, Ahmednagar among others.”

EOW, police inspector, Shivaji Padtare said, “They were promising a land area of 500 square feet as a guarantee for an investment of Rs12,000. They promised return of 12 per cent to 18 per cent every year, failing which they would be given the land. But they have promised each of their investors 500 square feet land as guarantee even though they know they don’t own so much land. Eventually, they would have failed to give the promised land cheating their investors.”