Chit fund company MD among four held for duping investors

Four persons, including two top officials of a chit fund company, have been arrested from Madhya Pradesh for allegedlyduping investors in Janjgir-Champa district of Chhattisgarh to the tune of Rs 1.5 crore, police said today.
The four, apprehended from Gwalior on Monday, were identified as Madan Mohan Bhargav (37), the Managing Director of the company, its Director Ram Sevak Shakya (35) and two other employees - Jaheer Khan (44) and Mukesh Pal (35), they said.
They allegedly duped people to the tune of around Rs 1.5 crore by promising them astronomical returns from investment schemes launched by the company, a senior police official said, adding Mukesh is a native of Shivpuri in Madhya Pradesh, while the others are residents of Gwalior.

They ran the chit fund company from 2013 to 2015 in Janjgir-Champa, during which about 50 investors deposited money in the firm. Subsequently, the company wound up it operations in the district and the employees fled, the officer said.
Based on a complaint by the aggrieved investors last month, a case was registered against the company's employees and a hunt was launched to arrest them, he said.
All the four accused were booked under sections 420 (cheating), 409 (criminal breach of trustpublic servant, or bybanker, merchant or agent), 34 (common intention) of IPC and also the provisions ofthe Prize Chits and Money Circulation Schemes (Banning) Act,1978, the officer said.

A few more people are wanted in connection with this case and efforts are on to nab them, police said, adding details regarding assets and bank accounts of all the accused are being collected.