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Another chit fund scam: ex-MLA lands in EOW net

The Economic Offences Wing of the Delhi Police arrested the former MLA of Najafgarh constituency on Wednesday for allegedly defrauding hundreds of people of cash and valuables worth Rs 100 crore.

Written by Express News Service | New Delhi |
June 18, 2009 2:12:52 am

The Economic Offences Wing of the Delhi Police arrested the former MLA of Najafgarh constituency on Wednesday for allegedly defrauding hundreds of people of cash and valuables worth Rs 100 crore.

According to the police,the accused,Ranbir Singh Kharab,was arrested from the Tis Hazari courts after a non-bailable warrant was issued against him by a city court.

The arrest came after many of Kharab’s victims gathered in his native Mundela Khurd village in Najafgarh on Monday to protest police inaction.

Kharab,accused of a chit fund scam,had a modus operandi similar to the various fraud cases that have surfaced across the city recently. The former MLA had launched a company,Jyoti Fair Finance,in 1998 and promised huge returns on investments. He also accepted valuables and kept them as a deposit.

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Jyoti Fair Finance,managed by Kharab’s wife Anita,steadily gained popularity and when Kharab was elected as the MLA of the area in 2003,the company’s reputation was reinforced among the people,the police said.

The first chink appeared in 2003,when the first complaint was lodged against Kharab but no case was registered. The police took no action against the MLA even as complaints kept trickling in later. Finally,2006 a case of cheating was registered against the accused in the Uttam Nagar police station.

“The investors were looking for quick returns and invested thousands of rupees and valuables in his company. Almost the entire village in Najafgarh area and neighbouring villages had invested in his company. He later floated more ideas about high returns. When the people started asking for the promised returns,he shut his office and disappeared,” a police officer said.

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