Delhi Police’s Economic Offences Wing (EOW) arrested the director of Kassa Finvest Pvt Ltd (KFPL) and Kassa Holdings & Consultants Pvt Ltd (KHCPL) after complaints from investors that the two companies and their sister concerns had cheated them to the tune of Rs 85 crore.
Police said a case under sections 403 (dishonest misappropriation of property) and 409 (criminal breach of trust by public servant, or by banker, merchant or agent) of the IPC was registered against Ashok Kumar (68), the director of KFPL and KHCPL, on April 10.
According to police, when the National Stock Exchange was contacted, it revealed that it had received about 350 complaints from over 35 investors. The money involved was worth Rs 85 crore.
“We slapped a case of cheating against the director because Kumar convinced investors to invest their money by assuring them that no private trading would be done with their money. However, the company allegedly used investors’ money to meet the official expenses of the company to expand its business and for personal gains. The alleged fraud came to investors’ notice when cheques issued to the victims/investors were dishonoured. An LOC (look-out notice) was issued against the company’s director and higher officials,”
DCP (EOW) B K Singh said.
Police said the accused used to operate through a network of branches in major cities of the country and contacted gullible investors through executives representing the company. The investors initially invested small amounts, but kept on increasing their investments on promise of high returns.