Cops bust Rs 100-cr chit fund scam | punjab | Hindustan Times
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Cops bust Rs 100-cr chit fund scam

The Patiala police claimed to have busted a Rs 100 crore chit fund scam. Policemen arrested a local resident Joga Singh for possessing unaccounted Rs 71.5 lakh in his BMW car.

punjab Updated: Mar 31, 2014 10:32 IST
HT Correspondent

The Patiala police claimed to have busted a Rs 100 crore chit fund scam. Policemen arrested a local resident Joga Singh for possessing unaccounted Rs 71.5 lakh in his BMW car.


The police stopped the car following a tip-off and seized the money in the presence of income tax official Prikshit Singh and tehsildar Tarsem Sharma at Old Octroi Post at Dakala Road on Saturday evening.

The accused claims to be a franchise holder of Live Trading India, Mohali, for which he has collected money by promising 10 per cent interest per month of the total amount deposited with the company.

"The recovery of money is a tip of the iceberg as the police have found that there are nearly 150 franchise operators functioning for Sri Kant Acharya, a resident of Bangalore, who is also booked under a case of cheating", said SSP Hardial Singh Mann in a press conference.
He said the accused failed to produce any valid document for the collection of money from the public.

The accused had confessed that the company had collected money from more than 10,000 persons from Punjab, added the SSP.

They promised to double money in one-and-a-half year by investing in real estate, forestry and paper mills, which they had shown as ongoing projects of the company to lure investors.

Apart from Joga Singh and Srikant, the police has also booked Bhupinder Gupta, a resident of Tapa, who is acting as managing director of the company.

Joga Singh was taking one per cent of the commission of total collected money, apart from salary from the company.

The accused had constructed two offices in Sector 9, Panchkula, and another in Industrial Phase 5, Mohali.

The police and income tax officials have started the investigation to unearth the whole scam and have requested the banking authorities to seal bank accounts, so that investors' money should not be siphoned off by the company.

An FIR for cheating and conspiracy has been registered at police station division No 2.