IPS officer in custody for multicrore scam

A CBI court in Coimbatore remanded senior IPS officer Pramod Kumar in custody till May 17,a day after he was arrested by the CBI from Delhi over his alleged role in a multi-crore cheating case. It also allowed CBI to take him into custody for five days

Written by Express News Service | Chennai | Published:May 4, 2012 2:19 am

A CBI court in Coimbatore on Thursday remanded senior IPS officer Pramod Kumar in custody till May 17,a day after he was arrested by the CBI from Delhi over his alleged role in a multi-crore cheating case. It also allowed CBI to take him into custody for five days.

Kumar,46,former IGP for the West Zone,was on the run after the Madras High Court rejected his anticipatory bail plea. His home in Chennai was raided by the officials,after investigations suggested that he played a role in helping the accused in a financial fraud case that was registered under his watch.

In September 2009,the police in Tirupur district received complaints that the persons running the Pazee Forex Trading Company had collected deposits from them but failed to return the principle or the high benefits they had promised. The company was floated the previous year by K Kathiravan,the Tirupur district correspondent of a vernacular daily,his son K Mohanraj,and one Kamalavalli from Chennai.

As complaints came in and the total amount the trio allegedly collected ran into hundreds of crores,Pramod Kumar intervened through his subordinates to fix a deal with the company officials. They were allegedly asked to pay Rs 10 crore as bribe for reducing the size of the scam and,therefore,repayments.

While this was on,it was alleged that Kamalavalli was kidnapped and sexually abused by investigating officers to extort money from the Pazee officials. The Crime Branch that first registered the case arrested inspector K Mohanraj who allegedly collected the first instalment of bribe money,nearly Rs 3 crore. Soon,his colleagues,inspector Shanmugiah and DSP Rajendran,were charged of being part of the conspiracy and placed under suspension.

The case was subsequently transferred to the Economic Offences Wing and then the State Crime Branch CID,which probed the matter further and put the total figure at over Rs 500 crore.

Soon after,the case was transferred to the CBI as directed by Madras High Court.

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