Mahesh Motewar, the chairman and managing director of the controversial multi-crore collective investment scheme company Samruddha Jeevan Group, was remanded to magisterial custody on Tuesday. Motewar is presently in the custody of the CID and would be handed back to Odisha police for further investigation in a chit fund scam.
The CID is currently investigating a cheating case against Motewar at Chaturshungi police station, which was registered in 2014. Though earlier, he had managed to receive bail, the CID had arrested him under the stringent Maharashtra Protection of Interest of Depositors (in financial establishments) Act, 1999.
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In 2013, the Securities and Exchange Board of India (SEBI) had barred the directors of the company, headquartered at Shivajinagar in Pune, from raising money from investors. An offence was also registered against the directors, including Motewar, at Deccan Gymkhana police station for allegedly continuing to raise money from investors despite the ban.
Motewar was produced before a special MPID court on Tuesday by DSP, CID, SE Pacharane. The CID told the court that Motewar would be handed back to Odisha police for an ongoing investigation in the chit fund scam. The special court of special judge SG Kale remanded Motewar to magisterial custody of 14 days. Motewar is presently investigated by the CID, CBI, Maharashtra police and Odisha police.
The company had been collecting money from small investors, most of whom were from rural and semi-urban areas, with promises of huge returns on investment in cattle and goat farms. SEBI had found that besides facing several allegations of illegal practices, the company was running the scheme without proper approval.