Rs 991-crore Ponzi Scam Unveiled in Maharashtra

Raising the issue during Zero Hour in the Lok Sabha, the BJP MP from Mumbai North-east said the company, KBC Club and Resort Pvt Ltd, robbed investors off their hard-earned money and disappeared with the loot.

Published: 18th July 2014 07:41 AM  |   Last Updated: 18th July 2014 07:41 AM   |  A+A-

NEW DELHI: After the West Bengal’s Saradha chit fund scandal, another Ponzi scam has been unveiled in Maharashtra where approximately `991 crore has been swindled, BJP MP Kirit Somaiya alleged on Thursday.

Raising the issue during Zero Hour in the Lok Sabha, the BJP MP from Mumbai North-east said the company, KBC Club and Resort Pvt Ltd, robbed investors off their hard-earned money and disappeared with the loot.

Somaiya told the House that at least three people who had invested in the company committed suicide in Nashik district. “I had given a list of 41 such companies to the Maharashtra government in which at least 10 lakh small investors’ hard-earned money has been compromised,” Somaiya told the House.

He also wrote a letter to Union Finance Minister Arun Jaitley requesting SEBI action against the guilty.

Somaiya alleged that the company offered to double the money invested in three years and added that the police inspite of knowing about the fraudulent activity, ignored it.

Somaiya told Express that the promoters of KBC Club and Resort Pvt Ltd Bhausaheb Chhabu Chavan, Aarti Bhausaheb Chavan and Bapu Chhabu Chavan, who floated the company in 2010, are absconding and are believed to be hiding in Singapore.

“I had asked the Maharashtra government to take strict action against the directors and had submitted several documents regarding the Ponzi scams in Maharashtra, but no action was taken. The government indifference led to the suicide of three small investors,” Somaiya added.

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