Chit fund scam: EOW attaches accused’s assets worth Rs 500 cr
The Economic Offences Wing (EOW) of Mumbai Police have been busy concluding the case of the Ponzi chit fund investment scheme, which is spread over ten states and managed to dupe four lakh investors.
Balasaheb Bhapkar, the main accused in this case, allegedly owns properties worth more than Rs 500 crore, while the unrecovered assets might exceed the value of Rs 1,000 crore. After many searches and raids, EOW officials have been able to recover no liquid assets and around 800 immovable properties belonging to the Bhapkar and his family. They have also managed to seal 500 properties, including land, bungalows, commercial buildings, offices and flats located in Delhi, Pune, Thane, Chattisgarh, Orissa, Madhya Pradesh, Uttar Pradesh, and Goa.
Bhapkar floated a chit fund investment company in 2001 and soon after, had more than 150 offices across the country. According to an officer from EOW, the companies, namely Sai Prasad Corporation Limited (SPCL), Sai Prasad Construction Pvt Limited (SPCPL) and Sai Prasad Foods Pvt Limited (SPFPL), were owned by Bhapkar, his wife Vandana and his son Shashank and were headquartered in Pune. “The investment schemes, with a maturity period of 4-7 years, offered by these companies were simple and gave interest rates of 14-15% a year. On maturity, the investors could claim money or properties of the value promised by the company. Initially, people got some returns on the investment, but no one got any land, properties or the promised maturity amount,” the officer added.
Bhapkar’s wife has been arrested by the Chhattisgarh police while his son is still at large. Duped investors have filed cases across various states.
Balasaheb Bhapkar, the main accused in this case, allegedly owns properties worth more than Rs 500 crore, while the unrecovered assets might exceed the value of Rs 1,000 crore. After many searches and raids, EOW officials have been able to recover no liquid assets and around 800 immovable properties belonging to the Bhapkar and his family. They have also managed to seal 500 properties, including land, bungalows, commercial buildings, offices and flats located in Delhi, Pune, Thane, Chattisgarh, Orissa, Madhya Pradesh, Uttar Pradesh, and Goa.
Bhapkar floated a chit fund investment company in 2001 and soon after, had more than 150 offices across the country. According to an officer from EOW, the companies, namely Sai Prasad Corporation Limited (SPCL), Sai Prasad Construction Pvt Limited (SPCPL) and Sai Prasad Foods Pvt Limited (SPFPL), were owned by Bhapkar, his wife Vandana and his son Shashank and were headquartered in Pune. “The investment schemes, with a maturity period of 4-7 years, offered by these companies were simple and gave interest rates of 14-15% a year. On maturity, the investors could claim money or properties of the value promised by the company. Initially, people got some returns on the investment, but no one got any land, properties or the promised maturity amount,” the officer added.
Before launching his own companies, Bhapkar worked as a clerk at Pearls Group, another Ponzi chit fund company facing cheating cases and owing more than Rs 46,000 crore to around 5.85 crore investors from various states. After working at various centers of the company, Bhapkar learnt how to float chit fund schemes and attract investors. Bhapkar’s case, however, is spread over more states that the Pearls Group. Additionally, police officials are also probing the possibility of the money being parked in foreign accounts.
Bhapkar’s wife has been arrested by the Chhattisgarh police while his son is still at large. Duped investors have filed cases across various states.
