According to EOW officials, SPPL and SPFL have their offices across country. They floated a ponzi investment schemes with the help of agents and collected money from the investors promising them returns of 12 to 18 percent.
The Economic offence wing (EOW) of Mumbai police arrested Balasaheb Bhapkar, chairman of M/s Sai Prasad Properties Limited-Goa (SPPL) and Sai Prasad Food Limited- Pune (SPFL) in connection with duping around 20 lakhs investors to the tune of Rs2,000 crores through ponzi chit fund schemes. The arrest was made after assistant general manager of Securities and Exchanges Board of India (SEBI) lodged a complaint with the BKC police station against the directors and office bearers of the company.
According to EOW officials, SPPL and SPFL have their offices across country. They floated a ponzi investment schemes with the help of agents and collected money from the investors promising them returns of 12 to 18 percent. “The company also offered a land to the investors as a collateral security to gain the trust of the investors,” said an officer from EOW. He added further “The company has been carrying out it's ponzi scheme since 2001 along with it's sister concern company. It was clear from the beginning that the company had no intention to give the kind of returns to the people as they were aware that they don't have the kind of land that they had promised to the investors.”
During investigation it was revealed that Bhapkar, to avoid the scrutiny of SEBI, did not obtain the mandatory registration certificate under section 12(1B) of the SEBI Act and the SEBI (collective investment schemes) Regulations Act of 1999. “In January 2015, SEBI had conducted enquiries against both the companies and had directed them to close down their existing schemes and return the money to the investors. However, in spite of the order from the SEBI, the companies continued with their ponzi schemes,” said joint commissioner of police (EOW) Dhananjay Kamlakar. “We believe that Bhapkar's 11 group companies are involved in such a ponzi schemes,” he added.
The Mumbai police received a complaint in this regard a month ago after which an investigation was launched into it. Finally, on December 2, a case was registered with the BKC police station under section 188(Disobedience to order duly promulgated by public servant) section 406 (Punishment for criminal breach of trust), 420 (Cheating and dishonestly inducing delivery of property, 120(B) (Criminal conspiracy) along with section 3,4 and 5 of prize chits and money circulation (banning) Act 1978.
“We carried out search operations in Maharashtra, Madhya Pradesh, Uttar Pradesh, Rajasthan, Delhi and Goa and have identified a total of 192 bank accounts in 15 various banks belonging to the group companies and have freezed them,” said Kamlakar. He added further “There are already five cases registered against the company in other states out of which one is with the CBI.”
EOW DCP Pravin Padwal said, “They have 54 properties which includes 1,600 acres of agricultural land. These properties are in Pune, Nashik, Ratnagiri, Ahmednagar amongst others.”
About Rs74 crore has been recovered till now. Five more are wanted.
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