Tags:
Journalism of Courage
Ludhiana, May 6: The economic offense wing of the police has booked Hoffland Finance Ltd, a Hoffland group company, for fraud and cheating.
Giving details, SP Hqrs Virender Kumar told ENS that the company dealing in merchant banking, portfolio management, shares, investments and financial services started operations in the city in October, 1997.
Preliminary investigations conducted in the affairs of the company on the basis of a complaint lodged by a city investor, K. K. Jain, revealed that the SEBI had ordered the company to stop dealing in public investment service since July, 1997, and the Reserve Bank of India had also imposed a ban on receiving fresh deposits. The inquiry proceedings were pending with the SEBI and the restrictions were to hold good till completion of the inquiry.
Kumar further said the company was alluring gullible investors through attractive offers of high interest ranging between 24 to 27 per cent. While the company claimed to be a member of 16 stock exchanges in the country, the fact was that it had started operations in the city despite a ban by the SEBI and the RBI.
A case under Section 420/120-B IPC has been registered against CMD of the company, B. B. Sharma, two directors A. Subba Rao and M. N. Badam and two others, Rajiv Rumaile and Col retd. Harbaksh Singh, who were looking after the local operations of the company. City office of the firm in Feroze Gandhi Market had been sealed, the police informed and the further investigation is under way.
