The Economic Offence Wing (EOW) of the Mumbai Police, which is investigating the alleged Rs300 crore cash-credit fraud, arrested one more accused in the case from Pune on Wednesday.
The fraud came to light when officials of Bank of India (Taloja branch) got in touch with the South Indian Education Society (SIES) to confirm if the trust had asked for cash-credit. SIES office-bearers were informed by the bank that Rs5.52 crore has already been withdrawn using the cash-credit facility. Following this, SIES officials checked with other banks to find that a huge amount of money had been siphoned off using the cash-credit facility. Then a case was registered and EOW started investigations.
"We were on the lookout for one Roy Joseph ever since we made the first arrest in the case. He is the most important person in the scam as far as SIES trust is concerned," said an EOW officer.
Explaining Joseph's role, the officer said, "One Santosh Ghadge, who was already arrested, had approached SIES and told them to do a fixed deposit through Joseph's company, promising 1% additional interest which would be given as donation to the trust."
According to EOW officials Joseph was in touch with the trust and Mohammad Faish, chairman of the Showman Group, dealt with officials of the bank where the money was deposited.
During interrogation of Faish, it was revealed that he had duped a number of government agencies. On Wednesday, MMRDA registered a formal complaint against the Malabar Hill branch of Dena Bank. According to an officer privy to the investigation, MMRDA had a fixed deposit of Rs350 crore in the branch out of which Rs40 crore had been siphoned off. "We have received an official complaint from MMRDA, alleging role of bank officials in the fraud. We will carry out investigations to find out the truth," said an EOW officer.