Latest news with #BanningofUnregulatedDepositSchemes
Time of India
15-07-2025
- Business
- Time of India
Accused ‘sell' attached properties
T'puram: The accused in Nirmal Krishna deposit fraud have reportedly sold several properties owned by them despite being attached by under Banning of Unregulated Deposit Schemes (Buds) Act, 2019, as part of revenue recovery measures. TOI is in possession of new title deeds that show several properties worth crores of rupees at Kuthukal village in Neyyattinkara and Parassala were reportedly sold. An auditorium at Parassala was sold for Rs 6 crore and 185 machines of a factory in Kinfra were also sold with the silent consent of officials concerned. Some officials at the collectorate, Kinfra and other departments backed the accused in selling the attached properties, alleged Nirmal Krishna Nikshepa Samrakshaka Samithi (NKNSS). "After the Buds authority attached the properties, the accused approached various courts and obtained stay orders. These stay orders don't permit them to sell the properties, which were attached. But the accused used them tactically to sell the properties. Some officials worked with vested interest to delay attachment proceedings against several properties. This helped the accused sell the properties before being attached," said S M Nair, an NKNSS member. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Lagrange: Here's The Average Price of a 6-Hour Gutter Upgrade Read More Undo It is learned that the accused approached potential buyers to sell a factory at Kinfra for Rs 4 crore. The factory was attached by Buds authority. Later, the attachment was lifted after finding that the accused had taken it over from Usha Umesh, 53, a woman entrepreneur, by forging documents. Using this situation, the accused are planning to sell the factory. "There were 585 machines in the factory and the accused sold 185 of them for crores of rupees with the silent approval of Kinfra officials. I was contacted by a person whom the accused approached with a proposal to sell the factory and remaining machines for Rs 4 crore," said Umesh. As per preliminary findings, a cheating worth Rs 1,000 crore took place in the Nirmal Krishna fraud with over 13,000 depositors of Nirmal Krishna Chit Funds in Thiruvananthapuram and Kanyakumari districts losing money. Offering high interest, the accused accepted deposits from people but the firm later collapsed. The economic offence wing of Tamil Nadu crime branch is probing a case registered over the fraud and cases have also been registered in Thiruvananthapuram, Marayamuttom, Parassala, Vattiyoorkavu and Cantonment police stations.
Time of India
01-07-2025
- Business
- Time of India
Call for regulator grows as depositors seek justice
T'puram: The depositors' forum of the BSNL Engineers Cooperative Society has urged the govt to appoint a regulator to investigate irregularities within the society and take appropriate legal action. This appeal follows a recent Buds Court decision refusing to take cognisance of the deposit fraud case under Section 3 of the Banning of Unregulated Deposit Schemes (Buds) Act. Without invoking Section 3, revenue recovery proceedings cannot be initiated against the accused. The court observed that since the society is registered under the registrar of cooperative societies and is considered regulated, only a designated regulator—not any agency—can approach the court regarding such matters. In response, the depositors' forum is pushing the govt to appoint a regulator who can assess the society's activities and establish that due to serious irregularities, the society had effectively become unregulated. If the regulator presents this finding, the Buds Court may reconsider its decision and allow action under Section 3, thereby enabling recovery proceedings. "The govt had previously appointed Sajeev Kartha as the regulator, but he has since retired. A new regulator must be appointed immediately to ensure justice for the depositors who were defrauded," said a member of the forum. Meanwhile, the high court is scheduled to hear on Wednesday a petition filed by the economic offences wing of the crime branch, challenging the Buds Court's refusal to take cognisance under Section 3. The scam affected hundreds of depositors, most of whom were retired BSNL employees. They were lured with promises of high interest and ended up losing significant savings. A Section 68(1) inquiry conducted by the cooperative department revealed a fraud amounting to Rs 360 crore. The accused diverted depositor funds for personal investments, took large loans under benami names without proper guarantees and purchased properties across various locations. A total of 19 individuals, including the society's president, secretary and board members, have been implicated in the fraud. Get the latest lifestyle updates on Times of India, along with Doctor's Day 2025 , messages and quotes!
Indian Express
09-06-2025
- Business
- Indian Express
Mumbai: Court approves sale of jewellery seized in Torres Ponzi scam
A SPECIAL court has permitted the sale of jewellery—including gold, silver and moissanite stones—that were seized by the Mumbai Police during its probe into the Torres ponzi scheme case. The Economic Offences Wing (EOW) had approached court, seeking permission to sell the seized valuables and deposit them in a bank account created for recovery of the losses incurred by the investors. Over Rs 35 crore—including cash, furniture, properties—were seized by the EOW in the case. 'Valuation report be called of both the metals and moissanite stones and they be sold as per value stated in the report and the proceeds be deposited in the newly created bank account,' the special court said in its order last month. The court also directed that procedure be followed showing the sequence of the sale of the valuable property. It directed the Joint Commissioner of Police, EOW, to oversee the sale. It also said that video-recording of the proceedings be done and added to the chargesheet. In March, the EOW had filed a chargesheet into the Rs 142 crore 'scam', where over 14,000 investors were allegedly duped by Platinum Hern Pvt Ltd. The scam was masterminded by Ukrainian nationals, who promised investors weekly returns from six to 20 per cent for 52 weeks, based on their investments in silver, gold jewellery and moissanite stones from showrooms set up by the company named Torres. The EOW had initially sought permission for the auctioning of other seized properties, including furniture, at the six Torres stores. A bank account has been opened by the police to facilitate the process, additional public prosecutor J N Suryavanshi informed the court. The court directed that the money from the sale of the jewellery be deposited in the account as per procedure. The EOW has also invoked sections of the Banning of Unregulated Deposit Schemes (BUDS) Act in the case, which empowers the police to identify, auction and refund money to investors after following due procedure and taking permission from court. In March, the police had filed a chargesheet against eight arrested persons, while naming many others, including Ukrainian nationals, as absconding accused. The investors were lured into spending at the Torres showroom, by offers like a weekly lucky draw.
Time of India
07-06-2025
- Business
- Time of India
ED attaches properties worth 2.9cr in ‘double money scam'
Bhopal: The Directorate of Enforcement (ED), Bhopal Zonal Office, has provisionally attached 25 immovable properties worth Rs 2.9 crore under the provisions of the Prevention of Money Laundering Act (PMLA), 2002, in connection with the infamous "Double Money Scam. " The action follows an investigation initiated by the ED based on three FIRs registered at two police stations in Balaghat district, Madhya Pradesh. The cases were filed under various sections of the Banning of Unregulated Deposit Schemes (BUDS) Act, 2019, and the Indian Penal Code (IPC), 1860. Police had earlier filed charge sheets against several accused individuals involved in the case. According to the ED, the investigation revealed that the accused lured unsuspecting individuals by promising to double their money within a short period. In some cases, the accused even issued postdated cheques as assurance of returns. However, they failed to repay the promised amounts, leading to multiple FIRs. Following the registration of these FIRs and subsequent charge sheets, the ED Bhopal recorded an Enforcement Case Information Report (ECIR) under the PMLA to initiate a probe into the money laundering aspects of the scam. The agency found that the accused collected funds from investors either in cash or by direct deposits into the bank accounts of their proprietorship firms. These proceeds of crime were later used to purchase immovable properties, many of which were registered in the names of the accused, their family members, or close associates. Further investigation into the case is currently underway.
Time of India
06-06-2025
- Business
- Time of India
Nirmal Krishna deposit fraud: Home department directs Kinfra to return land to woman entrepreneur
Thiruvananthapuram: The home department by an order on Friday directed Kinfra to return the 50-cent land to a woman entrepreneur Usha Umesh, 53, from whom the land was seized by the key accused in the Nirmal Krishna deposit fraud. Until a few years ago, Umesh was operating Pooja Garments on the land at Kinfra Park, but the accused K Nirmalan evicted her using fraudulent methods. He then took over the land and the 54,000 sq ft building at the park by flouting all norms. The accused then reportedly paid Rs 89 lakh as a lease premium for the land to Kinfra. The land and factory are currently owned by one Sreejith, a close aide of Nirmalan and an accused in the deposit fraud. The order issued by the home department also directs Kinfra to remit the lease premium of Rs 89 lakh to Banning of Unregulated Deposit Schemes (Buds) Act, Authority, which initiated recovery proceedings against the accused. The fraud came to light when the authority legally attached the land and factory owned by the accused in the Nirmal Krishna fraud, as the woman submitted proof of ownership of land and factory. As per the Buds Act, the authority has no power to attach a third-party property. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Azioni USA fino a 1€ BG SAXO Scopri di più Undo Buds Authority later revoked the attachments, directing Kinfra to pay the lease premium paid by the accused to reimburse the depositors who lost money in the deposit fraud. "Kinfra leased out the land to Nirmalan when it was already owned by me. Kinfra could not produce the pact when it was sought through an RTI query. Now I am happy that the department directed Kinfra to give my land back," said Umesh. She may need to pay some premium amount to enter into a new pact with Kinfra, it was learned. Get the latest lifestyle updates on Times of India, along with Eid wishes , messages , and quotes !
