Blame it on the slowdown
When Subhash Aggarwal’s (45) financial investment firm was hit by the economic slowdown, he thought of a smart way of recovering losses — albeit not an honest one, reports HT Correspondent.delhi Updated: Jun 14, 2009 01:06 IST
When Subhash Aggarwal’s (45) financial investment firm was hit by the economic slowdown, he thought of a smart way of recovering losses — albeit not an honest one.
He lured people to invest in his company and promised to double the amount in a short time.
Gullible people fell for his scheme and one fine day after collected a huge amount, he locked up his office and simply vanished.
According to rough estimates, Aggarwal had swindled Rs 4 crore, though the amount could multiply several times, police said.
On Friday, Aggarwal and his wife Snehlata (42) were arrested when they had come to the police headquarters to surrender.
Over the past one week, the police got over 300 complaints against the accused.
In March 2008, Aggarwal —who started as a grocery store owner in Uttam Nagar—floated a company called “Stop Loss Commodities Private Limited” in Prem Nagar area of Outer Delhi.
This was before he took to dubious means to earn money. Aggarwal used to invest the money deposited with him in the share market and returned the amount with dividends to investors.
When the markets crashed, he kept on collecting money but never paid his investors. On May 19, he closed his office and fled.
Aggarwal allegedly bought luxury cars and four houses in and outside Delhi with the booty.
During a preliminary search, the police recovered Rs 1.10 lakh in cash and jewellery worth several lakh of rupees from them.
“He opened a three-storied swanky office in Prem Nagar to lure people,” said Amulya Patnaik, joint commissioner of police (EOW).
Four others, including Aggarwal’s father Satyapal, who opened the firm with him are absconding.
The police said Aggarwal targeted people who owned small businesses.
The complainants alleged the accused had promised them an interest of Rs 10,000 every month on the amount they invested.
“I sold my house and gave Rs. 10 lakh to Aggarwal in March, said Raj Kumar.
A year ago, the Uttam Nagar police had registered a case of cheating against Aggarwal.