KBC chit fund founder's properties sealed: Devendra Fadnavis

MUMBAI: Maharashtra Chief Minister Devendra Fadnavis today said that the properties of KBC chit fund founder have been sealed and a deputy collector has been appointed to auction it.
"The money recovered from the auction of properties valued about Rs 220 crore will be distributed to the investors," Fadnavis said in the state Assembly in response to a debate on the issue through a Calling Attention notice by Chhagan Bhujbal (NCP) and others.

Thousands of small investors, mainly farmers and salaried employees, had invested in the KBC chit fund which was floated by one K Bhausaheb Chavan. The promoter had promised huge returns, but he later absconded and the cheques issued by him bounced.

Fadnavis said the police had arrested the fund owner and seized his passport, but he managed to get court relief and has now fled to Singapore.

"The state police is trying to get him back and has started talks with Singapore authorities through Interpol," he informed the House.

Bhujbal said that investors in Nashik, Hingoli, Parbhani, Nanded, Aurangabad, Beed and other places had been duped of crores of rupees through the KBC chit fund and till last month, the police had not succeeded in nabbing the conspirator.

"So far, six investors have committed suicide. The government has turned a blind eye to the developments. The companies lured people to invest by promising more interest on short-term investment," Bhujbal said claiming that there are economic offences worth Rs 205 crore in Mumbai every month.

Recently, nearly 13,000 investors in the National Spot Exchange lost Rs 5,600 crore and cases were filed by the Economic Offences Wing of city police in this connection.

Several locals invested in schemes like Speak Asia, CT Limouzine, CU Marketing and lost heavily. The police have not taken suo moto action which has enabled the culprits to escape, Bhujbal alleged.