SIES trust scam: Cops say suspect swindled MMRDA, MTDC, APMC too

The Economic Offences Wing (EOW) of the Mumbai Police Crime Branch has reportedly found evidence indicating that Mohammed Fasih, arrested last week for allegedly cheating the SIES trust to the tune of Rs 58 crore, has also similarly targeted several government bodies, diverting nearly Rs 150 crore from their accounts to his own using forged paperwork. Police sources have confirmed that his victims include the Mumbai Metropolitan Regional Development Authority (MMRDA), the Maharashtra Tourism Development Corporation (MTDC) and the Agricultural Produce Market Committee (APMC), and the total amount that Fasih has made through his modus operandi is almost Rs 300 crore.

Fasih, a businessman, first came under the EOW’s radar early last month after the SIES trust discovered that huge amount of money had been diverted from their Fixed Deposit (FD) accounts to other accounts. They then approached the EOW, which conducted investigations and found that Fasih’s accomplices had convinced certain SIES officials to set up their FD with the former’s help, promising better returns. The accomplices, however, gave duplicate FD receipts to the officials and kept the originals with themselves, after which they took loans and opened cash-credit facilities in the same bank using the original FD receipts.

“After Fasih’s arrest, we scanned his bank accounts and found evidence of transactions of money more than just the Rs 58 crore that he got after swindling the SIES Trust. We followed the money trail and found that he made close to Rs 300 crore, out of which Rs 150 crore was made by siphoning off money from FD accounts of MMRDA, MTDC, APMC and other government bodies,” said an EOW officer.

Story continues below this ad

The officer added that Fasih, in connivance with bank officials, opened overdraft accounts in the same bank where the government bodies have their FD accounts. The police said the accounts were opened in the names of these organisations using forged documents after which money was transferred to them. “According to investigations so far, Fasih siphoned off Rs 70 crore from the MTDC, Rs 50 crore from the MMRDA and around Rs 30 crore from the APMC. Several officials of the bank are being interrogated,” the officer added.
MTDC Managing Director Jagdish Patil said, “I learned about the scam on Saturday and sent my officers to the bank the same day. The bank has assured us that our money will be secure.”

Despite repeated attempts, APMC chief accounts officer Mandar Salvi, MMRDA Financial Adviser Sunil Pimpalkhute and MMRDA commissioner  UPS Madan could not be reached.

gautam.mengle@expressindia.com