FD fraud: Mumbai EOW arrests father, son for duping more than 18,000 investors of ₹172 crore
After 2013, they did not return the principal amount with interestmumbai Updated: Feb 16, 2017 22:21 IST
A father-son duo was recently arrested from Indore by the Economic Offences Wing for allegedly duping more than 18,000 investors from all over the country of Rs172 crore on the pretext of creating fixed deposit accounts. The EOW has attached their properties to recover the money.
The arrested accused, identified as Shashikant Patel, 73, and his son Chirag Patel, 44, are directors of Plethico Pharmaceutical Ltd, an Indore-based company that is listed in NSE and BSE. In 2011, 2012 and 2013 they took fixed deposits from people to the tune of Rs172 crore.
After 2013, they did not return the principal amount with interest. The duo had promised an interest of 11% to 12.75% on the principal amount but they used the money as capital for their business.
A source said that out of the 18,455 investors, the medicine manufacturers duped from the country, 7,000 were from Maharashtra.
The duo faced heavy losses in their business and could not repay the money as promised. The investors waited for two years but when they realized that they will not get the money back they decided to take the legal recourse.
In October 2015, they approached the MIDC police station and registered an FIR under IPC sections of cheating and criminal breach of trust and relevant sections of Maharashtra Protection of Interest of Depositors (MPID) Act.
About 130 investors have come forward. The duo was arrested last week and produced before a sessions court that remanded them in police custody. They were granted bail by a court on Thursday and will be released from Arthur Road jail on Friday.
Their two plants in Indore and a flat in Santacruz have been attached.