Jammu Crime Branch has filed a chargesheet in a ₹1.22 crore investment fraud case involving investors in Samba district.
Who has been named in the case?
The Economic Offences Wing of Crime Branch Jammu filed the chargesheet before the court of the Additional Munsiff, Samba. The case concerns the alleged collection of ₹1,22,96,324 from investors after they were offered investment schemes promising attractive returns.
The accused identified in the case include Manoj Kumar, described as an Area-Branch Manager, and Vikram Singh, an Assistant Branch Manager. They were associated with Metropolitan Finance Limited, Mansar Finance Limited and Vaibhav Pariwar India Projects Limited. The chargesheet was filed in connection with a case registered under Sections 420 and 120-B of the RPC at Police Station Samba.
Crime Branch has also requested the court to initiate proceedings under Section 512 CrPC against Rajesh Kumar Rai, the Managing Director, who is absconding and has allegedly continued to evade the investigation.
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How were investors allegedly induced?
The investigation found that people in Samba were allegedly encouraged to invest their savings on promises of attractive returns. Investors were offered schemes including compulsory convertible preference shares, or CCPS, and fixed deposits.
Investigators found that ₹1,22,96,324 was collected from investors. Of this, ₹8,87,442 was collected in the name of Mansar Finance Limited, while ₹1,14,08,882 was attributed to Metropolitan Finance Limited.
According to the investigation, cheques were issued to investors for payments, but they were dishonoured. Investors also allegedly did not receive their money after the prescribed maturity period had ended.
The case centres on allegations that investors were persuaded to put their money into the schemes with the expectation of receiving returns, but the promised payments were not made.
What did RBI verification reveal?
Verification carried out with the Reserve Bank of India found that the NBFC registrations of Mansar Finance Limited and Metropolitan Finance Limited had already been cancelled for statutory non-compliance. Investigators also found that Vaibhav Pariwar India Projects Limited had never been registered as a non-banking financial company.
These findings became part of the investigation into the companies and the investment arrangements offered to people in Samba. The inquiry examined the status of the entities alongside the money collected from investors and the financial instruments allegedly offered to them.
What evidence did investigators seize?
During the investigation, officials seized documentary material including CCPS certificates, debentures, money receipts and bank records. These records formed part of the evidence gathered in the financial fraud investigation. The Crime Branch subsequently presented the chargesheet against Manoj Kumar and Vikram Singh along with a list of seized documents and witnesses before the court.
The investigation has also focused on Rajesh Kumar Rai, who remains absconding. Crime Branch has sought court proceedings against him on the ground that he has allegedly continued to avoid the investigation.
The chargesheet brings before the court allegations concerning the collection of more than ₹1.22 crore from investors, the regulatory status of the companies involved, dishonoured cheques and the alleged failure to return investors’ money when the investment period ended.
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