The Special Operations Group of the state police has arrested eleven office-bearers of a cooperative society on charges of duping lakhs of investors of funds worth Rs 8,000 crore, said SOG Director General Bhupendra Singh Yadav on Saturday.
The recently arrested accused include Virendra Modi and Kamlesh Chaudhary who are former chairmen of the Adarsh Co-operative Society.
The other arrested accused include Ishwar Singh Sinhal, chairman, Priyanka Modi, ex-managing director, Vaibhav Lodha, senior vice-president, Sameer Modi, CFO, Rohit Modi, Assistant Managing Director, Lalita Rajpurohit, Ex-MD; Vivek Purohit, director of six companies of Adarsh Credit Co-operative Bank, Bharat Modi, Aditya Mega Project Company director and Bharat Das Vaishnav from Technical Infrastructure Limited Company.
The DG said the SOG Jaipur headquarters in August 2018 had received information about opening of Adarsh Credit Cooperative Society Limited Ahmedabad by one Mukesh Modi. The society opened 806 branches in 26 states and four union territories. A total of 309 branches were opened in Rajasthan and 20 lakh members were formed.
These included about 10 lakh investor members. They invested about Rs 8,000 crore which were later invested in their shell company, the DG said.
Mukesh Modi and Virendra Modi allegedly gave an ex-gratia payment of Rs 270 crore to their son, daughter and son-in-law in one way or the other.
Also Mukesh Modi, without any work done by his wife and son-in-law, designated them as the advisor at Credit Co-Operative Society Ltd. and paid Rs 720 crore to them in the last three years.
The DG said the case was registered on December 28, 2018 in the SOG police station, Jaipur and a case under IPC sections dealing with criminal breach of trust, forgery, fraudulent cacellation and criminal conspiracy were registered.
According to the DG, it was found in the investigation that the Model Credit Co-Operative Society Ltd., through the Modi family, named friends and family members in the 187 loan accounts, invested 99 per cent of the investment amount received from 20 lakh investors illegally without making any collateral and provided loans to them.
The assets acquired by these shell companies from this loan amount were shown many times at a much higher value than their original value in their account books.
These assets have not been acquired via pledge/hypothecation/mortgage by the credit-operative society Ltd.
On March 31, 2017, an outstanding liability of Rs 1,86,242, 24,42,239 is pending in 187 loan accounts, which shows the misappropriation of funds belonging to the investors, the SOG DG said.