Another finance unit closes shop

LUDHIANA, May 17: A spate of finance, housing and plantation companies closing shop and fleeing the City after collecting hefty sums has left the small investors in a state of shock and helplessness. Latest to join the group is Prudential Capital Markets Ltd, which claimed to be a major player in merchant banking, investments, venture capital, housing finance, asset management, international trading and many other high growth industries.

According to SSP Dinkar Gupta, the company has closed down its local branch in posh commercial area of Feroze Gandhi market and the operators have fled. A criminal case of fraud and cheating under sections 420/120B has been registered against Vinod Baid, chairman of the company, J. P. Bhat and Shailender Seth, managers, who are also absconding.

SP Virender Kumar, Hqs also incharge of economic offences wing, handling the case, told ENS that the company had floated many schemes with varying options. Promising a high rate of interest up to 20 per cent and the investors were given post dated cheques to reassure them of the security of the invested money.

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