CBI arrests 2 directors of private company in connection with chit fund fraud

New Delhi [India], March 18 : The Central Bureau of Investigation (CBI) on Thursday arrested two persons, both Directors of an Asansol-based private company (a Chit Fund Company), who were absconding since the registration of a CBI case, from their hideout at Gomti Nagar in Lucknow.
Both the arrested accused were produced before the Competent Court and were remanded to Judicial custody.
"It was alleged that the accused had entered into a conspiracy with other Directors of the company and in pursuance thereof, the accused induced the common public with the promise of unrealistically high return of their investments claiming that the company was authorized for doing so by the statuary bodies viz. RBI, ROC and SEBI," read a statement by CBI.
"It was further alleged that the victims, so induced, were made to part with their money by way of investing in the various deposit schemes of the company. The said Directors thereafter fled away without making payment of the maturity amount," added the statement.
CBI had registered a case on September 15, 2017, on the orders of the High Court of Jharkhand and taken over the investigation for the case that was earlier registered at Police Station Mihijam, District Jamtara (Jharkhand).