SIT probing MP K D Singh's chit fund firm Alchemist

A Special Investigation Team (SIT) of the Kolkata Police has initiated a probe into Rajya Sabha MP K D Singh's chit fund company Alchemist. Cases under sections of Indian Penal Code (IPC) for cheating (420), breach of trust (406), breach of trust by public servant, or by banker, merchant or agent (409) and criminal conspiracy (120B) has been started against Singh and two other directors Kumarjit Singh and Pawan Verma. A case has also been initiated against three companies of Alchemist group.

A section of investors lodged a complaint against the group with Bowbazar police station on March 16. On the basis of the complaint the police initiated the probe. Sources said there are allegations against the group of cheating around Rs 2,53,01,063.

Like many other chit fund companies, the Alchemist group had collected a huge amount of money from people in the city and its adjoining districts through its chit fund schemes. There were also allegations against the same group of raising funds through chit fund schemes from people in the hills.

Besides spreading its tentacles in south Bengal districts, several had invested in ponzi schemes of Alchemist group as high rate of returns within a short period of time was assured.

Soon after the complaint was lodged with the Bowbazar police station, the brass of Kolkata Police held a meeting and the SIT was formed. Sources said that the investigating officers in the SIT have already started digging into the records of the Alchemist group and they have already discussed that how to proceed to reveal the money trail as the investors have lodged complaint of allegedly "not getting their money back as assured by the company".

The police would be going through the investment details of the group since it has stepped into the city find business. The police would investigate to ascertain that where the money that was collected through chit fund schemes was invested.

The police would also summon Singh and two other directors of the company along with other senior officials of the group after the preliminary investigation, which the police feel would not take more than three to four days.

It may be mentioned that Singh's name has also cropped up in the Narada sting operation case as the Narada News CEO Mathew Samuel had claimed before the Central Bureau (CBI) of Investigation that it was Singh who had given him Rs 80 lakh to undertake the Sting operation for Tehelka.

He had alao revealed before the CBI that the money was given to him from the Kolkata office of the Alchemist group. Thus the police would prove to find whether the money that has been used for the sting operation is the same one that the group had collected from people through chit fund schemes.