CBI arrests Pearls Group CMD in alleged ponzi scam

"The Central Bureau of Investigation has today arrested then CMD & Promoter Director of Chandigarh based private company & also Ex-Chairman of an Australia based company; then MD & Promoter Director of Jaipur based private company and then Executive Director (Finance) & then Executive Director, both of said Jaipur based company in an on-going investigation of a case relating to alleged collection of huge funds to the tune of Rs.45,000 crore(approx) from 5.5 crore(approx) investors spread all over the country," read a CBI statement.

 

The CBI had registered the case on Feb 2, 2014 after conversion of a Preliminary Enquiry registered earlier on the directions of the Supreme Court of India to enquire into the said allegations. 

 

The enquiry revealed prima-facie evidence of said private company having raised investments by issuing bogus land allotment letters to induce the investors. 

 

It was revealed that when the said company, on being directed by the High Court of Punjab and Haryana to wind up the scheme and refund the investors, a similar fraudulent scheme was operated under the name of other/second private company. 

 

Funds collected from new investors of this second company were used to repay the earlier investors of first private company to stave off criminal prosecution. 

 

Funds have been raised by the two companies through a vast network of lakhs of commission agents spread all over the country who were being paid hefty commissions for luring the investors.

 

"It was further alleged that the accused persons i.e. Promoter / Directors of said private companies & others illegally collected huge funds amounting to the tune of Rs. 45,000 crore(approx) from 5.5 crore Investors(approx) spread all over the country under the garb of sale & purchase of agricultural land and promise of high returns," the statement claimed. 

 

These schemes were running illegally and both the companies were allegedly engaged in fraudulent activities including forgery in their day-to-day operations. 

 

A series of raids were conducted by CBI during February, 2014 at the office premises and residences of directors and other suspected places in Delhi, Jaipur(Rajasthan), Chandigarh, Punjab and Haryana, which led to recovery of huge records as well as data relating to deposits from public and their mis-utilisation and diversion of funds, besides other incriminating documents. 

 

Investigation also revealed that the accused persons fraudulently diverted the alleged funds collected under the aegis of Jaipur based private company for purported investment in Australian companies. S

 

The arrested accused persons will be produced  before the competent Court in Delhi on Saturday.

 

The CBI saind that urther investigation is continuing to unearth the entire conspiracy of siphoning off funds collected from "innocent investors."