68-yr-old fraudster duped gullible investors of Rs 85 cr
15 April 2015 12:28 AM GMT
The accused has been identified as Ashok Kumar, a resident of Mehrauli. A case was registered against him on April 10, alleging that the directors and other employees of KassaFinvest Pvt Ltd, Kassa Holdings & Consultants Pvt Ltd and its sister concerns, in the garb of having authorisation of financial activities and trading by NSE, SEBI and others, have committed misappropriation of funds, breach of trust and cheating.
During investigation, it was found that the accused used to operate through a network of branches in major metropolitan cities of the country and contacted gullible investors through their executives.
“The investors initially invested small amounts, but kept on increasing their investments on promises of high returns. It was told that the money of buyers would be kept as securities and they would be paid a loyalty bonus. But they used up the money in meeting official expenses and the expansion of their business in the process making wrongful gains at the cost of the investors’ money,” a senior police official said.
He further added that it was found that an amount of more than Rs 20 crores were misappropriated and cheated by hatching a conspiracy by the alleged party. During the enquiry, complaints of another 28 complainants with similar allegations against the same alleged parties have also been received, in which the total involved amount is about Rs 39 crore.
“Further, a reference from National Stock Exchange of India Ltd was also received, in which it has been alleged that about 350 complaints of investors valuing around Rs 85 crores have been received in their office against the alleged companies,” the official said.
The complaints of several victims, the documents executed between the alleged and the victims regarding the financial transactions were also obtained. It was also found that cheques were issued to the victims for payment of their liabilities but the said cheques were dishonoured. Kumar holds a B.Tech degree from University of Roorkee (now IIT) and claims to be a gold medallist. He has also claimed to have topped the combined Engineering Services Exam conducted by the UPSC. He joined the Indian Railways in 1960 and worked at senior positions.
He took retirement in 1995 and took the membership of National Stock Exchange and ventured into stock-brokerage. He opened companies by the name of Kassa Finvest Pvt Ltd and Kassa Holdings & Consultants Pvt Ltd and opened branch offices at several places and employed several employees, police said.
During investigation, it was found that the accused used to operate through a network of branches in major metropolitan cities of the country and contacted gullible investors through their executives.
“The investors initially invested small amounts, but kept on increasing their investments on promises of high returns. It was told that the money of buyers would be kept as securities and they would be paid a loyalty bonus. But they used up the money in meeting official expenses and the expansion of their business in the process making wrongful gains at the cost of the investors’ money,” a senior police official said.
He further added that it was found that an amount of more than Rs 20 crores were misappropriated and cheated by hatching a conspiracy by the alleged party. During the enquiry, complaints of another 28 complainants with similar allegations against the same alleged parties have also been received, in which the total involved amount is about Rs 39 crore.
“Further, a reference from National Stock Exchange of India Ltd was also received, in which it has been alleged that about 350 complaints of investors valuing around Rs 85 crores have been received in their office against the alleged companies,” the official said.
The complaints of several victims, the documents executed between the alleged and the victims regarding the financial transactions were also obtained. It was also found that cheques were issued to the victims for payment of their liabilities but the said cheques were dishonoured. Kumar holds a B.Tech degree from University of Roorkee (now IIT) and claims to be a gold medallist. He has also claimed to have topped the combined Engineering Services Exam conducted by the UPSC. He joined the Indian Railways in 1960 and worked at senior positions.
He took retirement in 1995 and took the membership of National Stock Exchange and ventured into stock-brokerage. He opened companies by the name of Kassa Finvest Pvt Ltd and Kassa Holdings & Consultants Pvt Ltd and opened branch offices at several places and employed several employees, police said.
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