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Money chain: Fraud of Rs 1000 crore
Kochi: Crime Branch would probe various cases of financial irregularities, totalling Rs 1000 crore by multi-level marketing companies in Kerala, a top state police official said on Sunday.
Investigation would be completed in a time bound manner within five to six months, DGP Jacob Punnose told reporters after high level meeting of police officers from across the state at nearby Aluva.
Strong action would be taken against the guilty. Police officers found involved in the money racket would not be spared and would be dismissed from service, he said.
Economic offences, especially frauds like 'money chain' were rampant in the state, he said, adding, cases of 'money chain cheating' were reported from Kozhikode and Wayanad districts.
Police came to know that some companies, which were closed after cheating public, had relaunched their business in some other names, in other places. Police are also aware that some private banks were helping the companies indulging in economic offences, he said.
Complaints of frauds have been received against at least seven companies including Chennai-based Tycoon Empire International Ltd, which had collected Rs 370 crore from 50,000 investers and Bizarre group, which had collected Rs 55 crore from depositors, he said.
Companies, which had cheated the public of about Rs 300 crore, had operated 14 accounts in false names and address in a private bank, he said.
Police would report the matter to RBI, he said.
On builders not completing various housing projects, the DGP said controlling such builders was an impossible task. Public should enquire the credibility of the builders before making investments he said
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Posted on: 20 Jun 2011
Kochi: Crime Branch would probe various cases of financial irregularities, totalling Rs 1000 crore by multi-level marketing companies in Kerala, a top state police official said on Sunday.
Investigation would be completed in a time bound manner within five to six months, DGP Jacob Punnose told reporters after high level meeting of police officers from across the state at nearby Aluva.
Strong action would be taken against the guilty. Police officers found involved in the money racket would not be spared and would be dismissed from service, he said.
Economic offences, especially frauds like 'money chain' were rampant in the state, he said, adding, cases of 'money chain cheating' were reported from Kozhikode and Wayanad districts.
Police came to know that some companies, which were closed after cheating public, had relaunched their business in some other names, in other places. Police are also aware that some private banks were helping the companies indulging in economic offences, he said.
Complaints of frauds have been received against at least seven companies including Chennai-based Tycoon Empire International Ltd, which had collected Rs 370 crore from 50,000 investers and Bizarre group, which had collected Rs 55 crore from depositors, he said.
Companies, which had cheated the public of about Rs 300 crore, had operated 14 accounts in false names and address in a private bank, he said.
Police would report the matter to RBI, he said.
On builders not completing various housing projects, the DGP said controlling such builders was an impossible task. Public should enquire the credibility of the builders before making investments he said
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