Chit fund scam accused sent to judicial custody

Admin   |   13 April, 2016   |   759   |   3980

Summary: Sebi had also found that besides facing several allegations of malpractice, the firm was running the scheme without obtaining its permission. In March, the state CID had secured a transfer warrant from the Pune court for securing Motewar's custody in relation to the case at Chatushringi police station.The Supreme Court had earlier ordered the CBI to investigate 44 cases of chit fund scams in 2014. The Securities and Exchange Board of India, on October 31, 2013, had barred the company based in Pune from raising money from investors. Two of these complaints were registered against Samruddha Jeevan Group in Kolkata and Odisha. An inquiry revealed that the company had been illegally collecting money from investors., largely from rural and semi-urban areas, with promises of higher returns.

Pune: A special court on Tuesday ordered the remand of Mahesh K Motewar, an accused in the alleged multi-crore chit fund scam, to judicial custody until April 26 to facilitate his return to the Chaudwar circle jail at Cuttack in Odisha, where he has been named in is facing another case.

The Crime Investigation Department (CID) brought Motewar, who heads the Samruddha Jeevan Group, was brought to the city from Odisha on March 31 for investigation by the CID in a private case of cheating that an investigator had registered with the Chatushrungi police by an woman investor. The court had then remanded him to police custody for 12 days.

A team from CID's economic offences wing, led by investigating officer S E Pacharne, produced Motewar before S J Kale, the special judge for Maharashtra Protection of Interest of Depositors in Financial Establishments (MPIDFE) Act and submitted a plea for his judicial custody. The police cited an order by the designated court in Cuttack that required the CID to hand over Motewar's custody to the Chaudwar jail authorities.

The accused Motewar was first arrested on December 28, 2015 in Osmanabad in relation to another cheating case registered by the Murum police station there. A day after his arrest, the Central Bureau of Investigation (CBI) had carried out simultaneous searches at 58 places in Maharashtra and Odisha, including 40 places in Pune.

Later, the Talcher police in Angul district of Odisha had secured Motewar's custody in relation to a case of cheating and offences under Prize Chit Money Circulation Scheme Banning Act there. In March, the state CID had secured a transfer warrant from the Pune court for securing Motewar's custody in relation to the case at Chatushringi police station.

The Supreme Court had earlier ordered the CBI to investigate 44 cases of chit fund scams in 2014. Two of these complaints were registered against Samruddha Jeevan Group in Kolkata and Odisha. The Securities and Exchange Board of India, on October 31, 2013, had barred the company based in Pune from raising money from investors. An inquiry revealed that the company had been illegally collecting money from investors., largely from rural and semi-urban areas, with promises of higher returns. Sebi had also found that besides facing several allegations of malpractice, the firm was running the scheme without obtaining its permission.