Pushpendra Singh Baghel, 40, who was arrested from Indore on Thursday, could be involved in fraud of over Rs 900 crore that he collected from gullible small investors through chit fund companies, police said.
After his arrest, police had confirmed swindling of Rs 1.5 crore from 36 complaints.
Securities and Exchange Board of India (Sebi) had also detected a fraud of Rs 800 crore by him through a chit fund company Sai Prakash Property Developers in December 2014.
The police on Friday revealed that even after Sebi blacklisted his chit fund company, he continued operating in the field by opening two more chit fund companies in the name of Chambal-Malwa Chit Fund Company and Anoday Chit Fund Company.
Police have also recovered documents of Chambal-Malwa Chit Fund Company which revealed that he duped of Rs 2 crore from farmers promising them to provide land. However, police are yet to recover documents related to Andoday Chit Fund Company.
Additional superintendent of police Riyaz Iqbal said a team of police was being sent to Noida, where Baghel’s companies headquarters, to seize the documents.
A police team was also sent to Baghel’s native place in Shahdol district, he said. “The police teams are also carrying out search to arrest the other accused in the case,” said Iqbal.
He said letters had also been sent to the officials of Rajasthan, Chhattisgarh, Jharkhand, Madhya Pradesh Uttar Pradesh and Odisha and property details of Baghel and his family members had been sought, as during the course of investigation it was found that Baghel and his family members owned huge amount of properties in this states.
According to sources, Baghel, who is also a sitting vice-president of Janpad Panchayat Jaisingh Nagar of Sahdol district, had promised 15-20% benefit to the managers he had appointed at various branches of his chit fund companies.
“Details of the offices of his branches are also being collected so that exact amount of money he has duped and number of people could be established,” said a police officer.
Police sources claimed Baghel, during the probe, had confessed to have bought 250 acre in Shahdol district from the money he has generated through chit fund and was aiming to open a power plant in the district in the name of his wife Pushpanjali Singh.
On Friday, Baghel was produced in the district court from where he was remanded in police custody till June 25.