Private firm under scanner for duping investors; manager held

A private firm has come under scanner for allegedly duping investors to the tune of crores of rupees, police said today.
A sum of Rs 4.75 crore was seized from the head office of KBC, a multi-state private company, they said, adding that one of its officials has been arrested.
A case was registered against the company and its directors Bhausaheb Chhabu Chavan, his wife Aarati and manager Bapu Chhabu Chavan last night for allegedly cheating investors to the tune of crores of rupees, they said.
They floated the company in 2010 and lured investors by promising to double their money in a shot span of time and offered freebies, said P D Dahane, Assistant Commissioner of Police (Economic Offences Wing).

On March 7, a police team raided the company's main office located at Adgaon near Nashik and seized Rs 4.75 crore in cash besides some documents. The company's manager Bapu Chavan was arrested last night, police said.
Police got into action after receiving complaints from investors who failed to get their promised money from KBC.
Initial investigations have revealed the company was operating and mobilising deposits from general public, without taking permission from regulatory agencies like the RBI, they added.