Two former Gujarat policemen, who functioned as directors of Astha International Company, were arrested for allegedly cheating investors who had parked money in chit funds operated by their company. The duo — Santosh Sapklae and Chandrasinh Chauhan — were produced before a local court and were sent to police custody for 10 days.
Police said several people from Surat and other states had invested crores of rupees in different schemes under a chit fund operated by the company that was started around seven years ago.
The men, who were earlier with SRP Group 11 at Vaw at Surat, had also involved their family members in the company.
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One of the victims, Vikash Chhatrapal, had lodged a complaint a couple of months ago with Surat police about cheating to the tune of Rs 2.23 crore. Police had until now arrested seven accused, including Yuvraj Sapklae, brother of Santosh, in the cheating case.
Preliminary investigation has revealed that over 147 people had invested Rs 12 crore under different investment schemes in the company and are yet to get the money promised after maturity.
Both the directors were absconding and finally seeing no way out, surrendered before Surat district court on Friday. Surat Crime branch officials took custody of both and again produced them before Surat district court to obtain remand.
Police sources said the men had recruited hundreds of agents and gifted them cars and other luxurious items so that they would work hard and bring more money to the company. The company had its head office in Surat and its branch office spread in Surat, south Gujarat and also in other states like Maharashtra and Orissa.