14 booked for duping people in investment fraud

Arun Gandhi, chairman of Kaalikai Industries (India) Limited, and 13 others have been booked for allegedly cheating investors by promising high returns.

MUMBAI: 14 persons, including the chairman Arun Gandhi of Kaalikai Industries (India) Limited and Sampark Agro Multistate Co-operative Society Ltd, have been booked for allegedly cheating several investors whom they lured by promising four times the returns in just ten years of investment, and had also promised to pay heavy commissions to agents, said police sources.

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“We have registered a case against Arun Gandhi and thirteen others who formed both the companies—Kaalikai Industries (India) Limited and Sampark Agro Multistate Co-operative Society Ltd for allegedly cheating thousands of investors. The case has been registered following complaint lodged by Rajesh Sawant, an agent working with the companies,” said a police officer from the RAK Marg police station.

According to the police, the accused had floated several lucrative schemes and used to hold events to lure investors while promising heavy commissions to their agents to motivate them to bring in more investors. The companies have, however, not repaid the principal amounts or the interest on the investments nor the commission promised to their agents, the officer added.

In January 2022, the Economic Offences Wing of the Thane police had booked and arrested the accused for allegedly cheating around 9,000 investors to the tune of ₹22 crores. “The companies primarily operate from Thane but also had an office in Wadala. They have been operating since 2011. The complainant told us that they had cheated several people of crores of rupees,” said the police officer.

A case has been registered against the accused under sections 420 (cheating), 406 (punishment for criminal breach of trust), and 34 (common intention) of the Indian Penal Code and relevant sections of the Maharashtra Protection of Interest of Depositors (in Financial Establishments) (MPID) Act, 1999.