CBI FILES SUPPLEMENTARY CHARGESHEET AGAINST THEN CHAIRMAN OF A PRIVATE GROUP OF COMPANIES AND THREE OTHERS INCLUDING TWO MPS IN AN ON-GOING INVESTIGATION OF A CHIT FUND CASE

Press Release
New Delhi, 27.04.2017

      The Central Bureau of Investigation has today filed supplementary Charge Sheet U/s 120B r/w 420, 409 of IPC and 4 & 6 of Prize Chits and Money Circulation Schemes (Banning) Act, 1978 and 13(2) r/w 13(1) (d) of the PC Act 1988 & substantive offences thereof against then Chairman of a Private Group of Companies; two Members of Parliament and a Private Company in the Court of Special Judge, CBI Cases, Bhubaneswar (Odisha) in an ongoing investigation of  Chit Fund case.

      The investigation revealed that both the said accused persons in criminal conspiracy with then CMD of said Group of Companies allegedly abused their official position and participated & aided the illegal fund collection business of the company.  They allegedly promoted the illegal business of the company by writing letters to the Regulators favouring the company and also by sharing the dais with accused directors in various functions for canvassing about the schemes.  In lieu of which they received alleged huge financial benefits in cash as well as in kind.

      The instant case was registered on 05.06.2014 U/s 420/408/409/120-B/34 of IPC and Sections 4, 5 & 6 of Prize Chits & Money Circulation Schemes (Banning) Act, 1978, in accordance with the Order of the Hon’ble Supreme Court dated 09.05.2014 passed in Writ Petition No. 401 of 2013 and 413 of 2013 against the Chairman of a Private Group of Companies and others on the allegations that the company had collected money illegally from general public after enticing them with false promise of paying higher rate of interest. The total collection by the said Private Group was to the tune of Rs.17,000.00 crore (approx).

      Earlier, a chargesheet in the case was filed on 07.01.2016 u/s 420,409, 120B of IPC and 4 & 6 of Prize Chits and Money Circulation Schemes (Banning) Act, 1978 against four persons including then Chairman of said Private Group of Companies; then Managing Director; then Director; Ex. Director, and three Private Companies.

      Further investigation is continuing U/s 173 (8) Cr.P.C.

      The public is reminded that the above findings are based on the investigation done by CBI and evidence collected by it. Under the Indian Law, the accused are presumed to be innocent till their guilt is finally established after a fair trial.


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