Ponzi firm MD gets RI for fraud

A Special court here on Friday convicted Managing Director of Micro Finance Ltd (MFL), Ashok Kumar Patnaik in a multi-crore chit fund scam.

Published: 08th July 2017 03:10 AM  |   Last Updated: 08th July 2017 08:47 AM   |  A+A-

By Express News Service

BHUBANESWAR: A Special court here on Friday convicted Managing Director of Micro Finance Ltd (MFL), Ashok Kumar Patnaik in a multi-crore chit fund scam. Pantaik was sentenced to three and half years rigorous imprisonment and imposed a penalty of `15,000 by the Special CJM (CBI) on Friday.
 Patnaik had recently pleaded guilty of the charges pressed against him by the CBI. The CBI court has directed MFL to deposit `105 crore failing which its properties would be attached.

The company faced charges of defrauding gullible depositors of around `400 crore by floating six companies in the Sate that includes Micro Leasing and Funding, Micro Hotels, Micro Constructions, Micro Hospitals and Micro Media. Patnaik was arrested by the CBI in March 2014.

In February 2015, the CBI filed chargesheet against five people including former CMD of the company, Durga Prasad Mishra and MD Patnaik and three directors of MFL. They were charged under various sections of the Indian Penal Code and the Prize Chit and Money Circulation (Banning) Act, 1978.

MFL was barred by the Reserve Bank of India (RBI) in September 2012 from collecting deposits from people. The company’s founders, floated Micro Leasing and Funding Pvt Ltd to dodge the regulatory bodies and continue collecting public deposits.

Stay up to date on all the latest Odisha news with The New Indian Express App. Download now
(Get the news that matters from New Indian Express on WhatsApp. Click this link and hit 'Click to Subscribe'. Follow the instructions after that.)

Comments

Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp