EOW to investigate Nashik MLM firm fraud case

A probe into an alleged multi-crore embezzlement scam involving a city-based multi-level marketing (MLM) firm has been transferred to the Economic Offences Wing (EOW) of city police.
"Considering the magnitude of the alleged fraud involving KBC Multi-Trade Pvt Ltd. And the work pressure on Adgaon police station (where the case was registered), city Police Commissioner Kulwant Kumar Sarangal has transferred the investigation to EOW," Assistant Commissioner of Police (ACP) Pankaj Dahane told reporters here today.
The probe will be handled by senior police inspector A S Chadkhede, two assistant police inspectors, and five personnel of EOW, he said.
The case pertains to alleged duping of thousands of investors, mostly from rural areas across Maharashtra, allegedly by the now-defunct KBC Multi-trade Pvt Ltd over the last four years.

Police have so far arrested eight persons including three women in this connection. Two prime suspects in the case, namely Bhausaheb Chavan, the founder of the company, and his wife Arati are absconding and are believed to be in Singapore. Local police has already written to the state CID to initiate steps to bring them back.
Among the eight accused under custody is one Bharati Shiledar, a sister-in-law of the prime suspect.

City police have so far received more than 5,000 complaints from investors from Nashik and other parts of the state claiming that they were lured with foreign trips and attractive returns by Chavan before being duped.

Chavan used to operate from a posh office located in Adgaon area.
"Police on March 8 raided the company's office and seized some cash and property documents, collectively worth Rs 4.66 lakh, besides impounding hundreds of hard disks and some high-end cars," Dahane said.
After the alleged scam came to light, a staff nurse working with civil hospital here, who had invested money with the KBC, allegedly committed suicide on July 15 along with her 22-year-old son who was working as an agent for the company, police had said.
A roadside vendor, who had reportedly invested Rs 5 lakh in the firm, had allegedly attempted suicide last week at his residence over the loss of money.