Rishabh chit funds MD had his fingers in too many pies

A day after the couple’s arrest, investigators filed a petition before the court, seeking custody of the accused.

HYDERABAD: Investigators probing the Rishabh Chit Funds scam have found that the company’s managing director Sailesh Kumar Gujjar and his wife Nandini, who is a director in the company, had their hands in many pies. A day after the couple’s arrest, investigators filed a petition before the court, seeking custody of the accused.

Gujjar and his wife, allegedly responsible for the misappropriation of money deposited by nearly 500 customers, are learnt to have invested huge amounts of money in purchasing open lands in Amaravati, the Andhra Pradesh capital, after the division of the erstwhile State. They had hoped the value of the land would multiply thanks to the city being named capital to the State. However, with land rates having lowered in the recent past, they had suffered huge losses. 

In the meantime, Gujjar had also indulged in the conversion of demonetised currency into new notes. 
Apart from investing in Amaravati, sources said, Gujjar had invested more than `15 crore of his investor’s money in various pubs and restaurants in the city. He had established two casinos in Goa, costing`20 crore in total. Within a span of months, he faced losses in all these ventures, leading to their closure. 

The investigators now need to question the couple in connection with these financial transactions. A number of deposits took place in form of chits and fixed deposits with the Rishab Chits company during the demonetisation. Officials said they would ask IT officials to look into these transactions. 

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