The Economic Offences Wing of Delhi Police arrested one person for allegedly luring people to invest money in his schemes by promising good interest rates. Police said the accused has been identified as Satnam Singh.
Police said Singh reportedly gave investors free gifts and incentives, including foreign trips, to get them to invest in his bogus schemes. He offered many domestic and international trips to the agents of his company as incentives, to rope in more people to join and invest in the company.
“Singh floated a company called NGP Private Ltd. and lured innocent people into investing in a fake scheme promising handsome returns on their investments in a short period. To bring in more people into his trap, he initially gave gifts to the depositors and offered handsome incentives to agents who brought deposits from the individuals,” DCP (EOW) Rajnish Garg said.
Police said Singh targeted several small-time investors by offering schemes with a small initial deposit amount, ranging from as less as Rs 300 to Rs 12,000. Between February and August 2008, the company collected more than
Rs 1.5 crore.
Police said when depositors started demanding their returns after the lapse of the maturity period, the accused closed the company office and went underground.
“We found that the accused had fled to Chandigarh. Further inquiries revealed that he has been operating an account in Axis Bank, Chandigarh, which ultimately led us to his hideout” Garg said.
Police said during questioning, Singh said that after closing the offices at Delhi he had fled to Mohali.