The Central Bureau of Investigation (CBI) today arrested the former CMD and former MD of a West Bengal based group of companies in an on-going investigation in a chit fund case.
The case was registered in CBI on 5 June 2014, under various Indian Penal Code Sections and Sections 4, 5 & 6 of Prize Chit and Money Circulation (Banning) Act, 1978, on the orders of the Supreme Court dated 9 May 2014, passed in two writ petitions in 2013 against the group’s officials.
It was alleged that the accused in conspiracy with each other had illegally collected money from the investors under investment schemes by fraudulently promising very high returns and thereafter did not repay and cheated the helpless investors, CBI said.
Investigation revealed the accused, in criminal conspiracy with others, had allegedly collected huge amount of funds (approximately Rs.2862 crore) from the investors after fraudulently promising high return, without any permission from the regulatory bodies and in pursuance of that, committed cheating & criminal misappropriation of
The two arrested accused will be produced tomorrow before the ACJM, Bidhan Nagar Court (West Bengal).