Credit society chairman held for duping investors | mumbai | Hindustan Times
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Credit society chairman held for duping investors

mumbai Updated: Sep 22, 2010 00:49 IST
Mohamed Thaver

The chairman of a finance services provider, who allegedly cheated investors of more than Rs 10 crore, was arrested on Tuesday morning after one of the duped investors tipped off the police.

The Nehru Nagar police booked Radheshyam Gupta (41), chairman of the Dhanlaxmi Co-operative Credit Society, for cheating and criminal breach of trust.

Last month Ayodhya Sahu (68), who had invested Rs 5.5 lakh with the credit society in 2005, moved the Vikhroli court alleging that Gupta was refusing to return his deposit.

Following the court’s directions, the police then registered a complaint against Gupta on September 19.

“Gupta is a member of our community and would often ask us to invest in his co-operative credit society. Moreover, he offered interest rates as high as 18 per cent on deposits,” said Sahu. “As per my estimates, there are more than 100 people who have invested in the credit society with at least Rs 10 crore at stake.”

Gupta owns a car showroom and is also a builder.

“We arrested Gupta after Sahu tracked him to his Satyamurthy building residence at JVPD scheme, next to actor Amitabh Bachchan’s bungalow,” said B. Jagdale, assistant police inspector of the Nehru Nagar police station.

“Gupta had a similar case pending against him in Charkop last month. The court had refused him bail and police were looking for him,” added Jagdale.

For two days, Gupta managed to evade arrest. “Whenever they went to his office or home, we would be told he was not there,” said a police officer, on condition of anonymity.

On Wednesday, Sahu, who was hiding opposite Gupta’s residence since 4 am, saw a priest enter his house at 6 am. “As the priest was leaving, Sahu made small talk with him and asked if Gupta was at home. When the priest said ‘Yes’, Sahu informed us and we rushed to the spot,” added the officer.

But when Gupta saw police van enter his building premises, he fled in a Maruti Swift. After a car chase, he was finally caught near the Juhu ISKCON temple.

Jagdale added, “We expect more people to come forward and register complaints.”

Ganesh Pawar, sales head of the Chembur branch of Dhanlaxmi Co-operative Credit Society, said he would not be able to comment on the case.

Despite repeated attempts, officials of the credit society could not be contacted for comment.