Charge sheet filed in Pincon group scam
The SOG pressed charges of forgery for cheating, criminal breach of trust and eliminating evidence.Updated: Jan 29, 2018 22:21 IST
The Special Operations Group (SOG) of Rajasthan police on Monday filed a 30,000 page charge sheet against four accused in the Pincon Group scam of Rs 1,000 crore in local court here.
The group had duped over 25,000 people across the country by raising money from them – in violation of regulatory body norms – and later misappropriating it. The SOG pressed charges of forgery for cheating, criminal breach of trust and eliminating evidence against four people including Manoranjan Roy, the managing director of West Bengal based group which also owned the Pincon Spirit Limited.
Roy and three others – Hari Singh, Raghu Jaya Shetty and Vinay Singh – were all middle-aged men and had worked at top positions in banks previously, Sanjay Shrotriya, SOG superintendent of police, said. They were arrested in November after the SOG received a tip off from an employee of the group and started investigating the case.
“The group had various companies like the Greenage Food Products, LRN Finance, etc. through which it issued debentures. They flouted the guidelines of regulatory bodies by exceeding the number of investors, hiding information, misleading the trustees, and carrying out transactions in cash,” said Shrotriya.
The group had been active since 2010-11 and raked investments ranging from Rs 10,000 to Rs 50 lakh. “They offered an annual interest rate of 15%, nearly double of what the banks would give. Once or twice, they gave the money with said interest, thus, earning the trust of investors, who in turn, invested more and roped in more investors,” the SOG official added.
The group then siphoned off most of the money with the help of shell companies. Apart from this, they took the advantage of investors’ ignorance and offering even greater returns, erected a new firm and converted their money into shares, the official added. Later, they left the investors in lurch showing loss to the firm.
The directors of the companies also kept changing, making accountability to the investors difficult. The group, which in Rajasthan had offices in Ajmer, Chomu, Kota, and Bharatpur, also took huge investments in demonetised notes in November last year.
First Published: Jan 29, 2018 22:21 IST