Jagjeet Singh, managing director (MD) of the Crown Credit Co-operative Society, Barnala, who has been arrested for allegedly defrauding customers, has got the distinction of having been honoured in the House of Commons, England, and sponsoring the British Derby County Football Club (DCFC) and funding a company in the United Kingdom.
Jagjeet, who is in police remand in the financial scam, tipped to be above `400 crore, was last year awarded for his contribution to the financial sector in England, where he co-founded a company TradeNext dealing with forex and other financial services.
Jagjeet Singh, a co-founder of the TradeNext, received the award in recognition of his company's contribution to the financial services sector in the UK. He was awarded the 'Financial Services Provider of the Year' award at the Political And Public Life Awards function held at the House of Commons.
The awards function, hosted by the UK's member of Parliament (MP) of the Asian origin, Keith Vaz, and organised by the Asian Voice, a media organisation, to honour Asians in various domains including politics, industry, philanthropy, business and entertainment.
Valerie Vaz, MP (Walsall South), presented the award to Jagjeet for his outstanding contribution in the field of financial services.
Jagjeet Singh's company TradeNext, operating in the margin derivatives space, had entered into a collaboration with the British football club, Derby County Football Club (DCFC), to enhance financial literacy among sports fans. The DCFC is a leading club in betting.
Sources said that Jagjeet had transferred huge money to England. "The exact amount of the money that Jagjeet had shifted to the UK, has not been ascertained, but we have arrested two Patiala-based forex traders, Lalit Kumar and Partap Singh, who have confessed to doing hawala transactions for Jagjeet worth crores of rupees," said senior superintendent of police (SSP) Opinder Singh Ghuman, who refused to share more details.
He, however, confirmed that the police have asked the Enforcement Directorate for assistance.
"The scam is multiplying into a multi-crore one, and the police still have not got all records to finalise how many people have invested and who were they. So far, only a few hundred victims have approached the police," said the SSP.
According to investigation, the company was operating in Punjab, Haryana, Rajasthan and Maharashtra under various names. Most of the victims are from Barnala, Sangrur, Amritsar, Tarn Taran, Bathinda and other Malwa areas.
Jagjeet was having keen interest in media and had been working for many channels and newspapers as a stringer. All his vehicles were having stickers of "Press'.
The accused, through a network of agents, were taking money from investors by promising them to double it in five years. He was even giving 4% monthly interest to some investors.
As he shifted a large amount to the UK, and the slowdown affected the inflow of money in Punjab, he failed to pay interest to investors from June, which led to complaints by some investors. As many investors have invested black money, so a majority of investors are not coming forward to approach the police, but some were attacking the agents of the company.
Where did money go
A major chunk of the money was shifted to hawala. So far, police sources that a sum of about `400 crore is involved in entire scam.
More than 5,000 investors are on the rolls of the company through nami and benami transactions. However, Jagjeet said that he was regularly paying interest to 5,000 customers.