CID uncovers wide web of deceit

The investors who were allegedly duped by the group have already filed three separate cases in Pune while while eight other cases of a similar nature have been lodged in Mumbai, he added.

Preliminary investigations have also revealed that the racket used to operate at various places including Ahmedabad, Delhi, Haridwar, Pune and Mumbai, according to the CID officials. The CID has already conducted several raids in these cities and sealed documents pertaining to the property deals and share transactions. Property, estimated to be worth Rs five crores has also been recovered.

The investigation has also disclosed the involvement of Dr Avinash Magan, the Managing Director of the Haridwar-based Yogi Pharmacy Limited and Ratan Garera, the Managing Director of the Delhi based H-Lon Hosiery Limited in cheating several people to a whopping Rs 100 crores. More than 100 cases have been filed against them in different states, the State CID officials said.

The State CID has also discovered hundreds of bogus companies registered in the names of family members and servants of the arrested racketeers. These companies were allegedly floated in a bid to divert the public funds, they added.

Prominent share broker from Mumbai Stocks Exchange Bharat Khona, Managing Director of the Haridwar based Yogi Pharmacy Limited Avinash Magan, Managing Director of an Ahmedabad-based 4 M Finance Limited, Vinit Agarwal, Managing Director of the Delhi based H-Lon Hosiery Ratanlal Garera, Pune-based financial consultant Ailesh Shah, former executive director of Pune-based Janata Cooperative Bank Limited Dilip Tengse, former Manager of the Janata Cooperative Bank Limited Shrikant Anikhindi, former manager of Bank of Baroda Suresh Tillu, Chief Cashier of the Bank of Baroda Jeetu Naik, sub broker from the Mumbai Stock Exchange Manoj Shah, employee of Canara Bank Bhagwan Rasam and employee of Union Bank of India Dattu Sawant were recently arrested by the State CID sleuths on charges of defrauding various banks of a whopping Rs 25 crore.

The arrested share brokers, industrialists and bank officials were recently produced before a Metropolitan Magistrate in Mumbai and remanded to the custody of the State CID till June 26.

The racketeers allegedly withdrew Rs 34 crore from Allahabad Bank, Union Bank of India and Canara Bank by encashing forged LoCs between 1996 and 1997. These forged LoCs were allegedly deposited with the Janata Sahakari Bank, Centurion Bank, Times Bank and Vaishya Bank, according to the investigators.

The scam came to light when officials of the Fort branch of the Federal Bank realised that the LoC documents of Canara Bank worth Rs five crore were bogus and tipped off the police.