Fugitive MD held for Rs 10K-cr chit fund scam

Tribune News Service

Jupinderjit Singh

Chandigarh, May 31

Nearly seven years after the Rs 10,000-crore crown chit fund scam came to light in Punjab, absconding managing director of the firm Jagjit Singh was arrested by the Haryana Police from Gujarat today.

Crown Ponzi scheme: Jagjit faced 400 FIRs

• Jagjit Singh’s firm began operations in 2011-12, promising to double investors’ money in three years. It shut shop in early 2014
• Thousands of investors from North were duped not once but several times as accused floated 7 firms one after another. Two investors had died by suicide
• The Punjab Police had formed an SIT in 2016 on the orders of the Punjab and Haryana High Court
• Following protests, nearly 400 FIRs were clubbed together for probe by the Crime Branch. The ED was holding a separate inquiry

The accused had duped thousands of investors from North India not once but several times by floating one after another seven companies offering to double the investment through Ponzi schemes.

Though a Special Investigation Team (SIT) of the Punjab Police had arrested 23 members and agents of the company, Jagjit and Mohsin Jameel, the CEO of the company, had escaped the police net. Jagjit, a turbaned Sikh, had changed his appearance as he was found clean-shaven.

A Haryana Police spokesperson said Jagjit, originally hailing from Amritsar’s Sant Vihar Colony, was arrested from Gujarat, where he was living in hiding.

He said apart from Fatehabad district, cases of fraud were registered against the accused in various parts of Punjab, including Ropar, Barnala, Tapa Mandi, Bathinda, Malerkotla, Sangrur, Mohali, etc. He had absconded after getting bail from a court in a case registered in Punjab.

After getting complaints from people from dozens of villages on January 26, 2017, in Fatehabad district, the police had registered a case against Sandeep Singla and his son Saurabh Singla, both residents of Bhatia Nagar, Tohana; Avtar Singh, a resident of Bassi Pathana, Punjab; Jagjit Singh, alias Ladi, of Amritsar; and Jaswinder of Barnala.

The arrested accused was produced in court, which remanded him in 10-day police custody for interrogation and recovery.

DSP Kulwant Singh, key investigator of the Punjab Police special Investigation Team, said the accused would be brought to the state soon for further investigation.

The Punjab Police had formed the SIT in 2016 on the orders of the Punjab and Haryana High Court. Two investors had died by suicide and a series was carried in The Tribune about thousands of affected investors. Following several complaints and protests by investors, nearly 400 FIRs were clubbed together for investigation by the Punjab Police Crime Branch.

The Enforcement Directorate (ED) was holding a separate inquiry into the money-laundering aspect of the scam. Both ED and the Punjab Police had declared him ‘most wanted’ and published his photos in newspapers. Their property was also sealed.

The issue was a burning topic during the 2017 Assembly elections with investors even protesting at poll rallies of then Congress leader Capt Amarinder Singh, besides the house of then Finance Minister Parminder Singh Dhindsa.

Some of the accused had even produced a film from the ill-gotten money. The SIT, currently headed by AIG Harvinder Virk, was led by different officers in these years.

The accused floated three different companies while on the run, promising the duped investors of repaying the money if they invest again. Some of the duped investors again fell prey to his Ponzi scheme.

Ajit Singh from Ambala led a Haryana Chit Fund Scam Sangharsh Committee, while Jai Kumar of Barnala led a campaign against fraudsters in Punjab.

The company began operations in 2011-12 and shut shop in early 2014. They had promised to double the money of investors in three years. Instead, they laundered money to the UK, Singapore, Dubai and Hong Kong through hawala transactions.

The police told the court the seven companies listed illegal over violation of the Prize and Chits and Money Circulation Scheme (Banning) Act, 1978, were Crown Credit Co-operative Society, Bombay Investment Group, Future Choice Group, Live Trading India Company, Mega Fine Agro Concept Ltd. Nicer Green Housing and 4S Forever.

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