CBI arrests ponzi firm promoter, says officials
New Delhi: The CBI has arrested Sudeer Muhammed Cheriya Vannarakkal who allegedly siphoned off about Rs 10 crore of public money through a ponzi scheme after he was deported from Saudi Arabia following an Interpol Red Notice, officials said on Sunday.
Cheriya and his partners had floated a ponzi company in 2009-11, called Forex Trade, in Kasargod in Kerala and lured gullible investors with a promise of exorbitant rates of interests on 61-day deposits and an assurance of 2-per cent commission per month to agents, they said.
With the help of the scheme, he collected over Rs 9.98 crore of investments from people but did not pay the promised returns and principal.
The CBI took over the investigation into the case on the directives of the Kerala High Court and registered five cases against him, his accomplices and the company which were earlier probed by Kerala Police, they said.
"He was involved in five cases registered by CBI in Chennai. CBI had got issued a Red Notice through Interpol against the accused. The accused was located in Saudi Arabia and with the close assistance & coordination with the authorities in Saudi Arabia through Interpol channels, he was deported back to India," CBI spokesperson R C Joshi said. He said the accused was produced before a special court in Ernakulam which sent him to judicial custody till April 8.
"After investigation, a charge sheet was filed in the Court of Chief Judicial Magistrate, Ernakulam. The accused were declared as Proclaimed Offenders by the court," Joshi said.
He said the fifth case was registered on the allegations that the accused induced the a complainant to arrange approximately Rs 50 lakh as deposit and promised to give monthly returns arising out of his business to the depositors.
"The complainant allegedly invested Rs 19 Lakh in 2011 in the said Company and the accused did not pay returns as well as the principal amount to the complainant.... A charge sheet was filed in the special court, Ernakulam in this case as well," Joshi said.