Finance, real-estate firms owned by brothers raided

Sending shock waves down the spine of scores of illegally-operating financial and real-estate business establishments across Prakasam district, the Prakasam district police headed by Superintendent of Police Dr Raghuram Reddy on Sunday raided offices of Nakshatra Real Estates and Maitri, a finance company-- owned by two brothers-- for alleged frauds involving several crores of rupees. A case of cheating was registered against the Nakshatra company. However, the police so far has not booked Maitri for any misappropriation of funds.

The police reportedly carried out the raids to prevent the two companies from jeopardizing interests of the investors. A large number of customers who purchased plots and depositors invested in finance schemes are worried over the latest development.  

While the raid on Nakshatra firm followed a complaint given by a victim to the One Town Police here, the searches in the money circulation company of Maitri were prompted by suspected siphoning of depositors’ funds.

The police have received complaint that the real-estate company had cheated by assigning plots not owned by the firm. He alleged that some of the plots that formed the venture of the real-estate company were located in assigned land. During the raids, the police reportedly recovered crucial files pertaining to different ventures. Based on the evidence of cheating during the questioning of the company organisers, the police chose to register a case.

Both the police and management of the real-estate firm were reluctant to share information about the raids creating anxiety among the clients who purchased plots and invested their hard earnings in the ventures. The firm reportedly sold hundreds of plots in the name of different ventures. Now, the buyers are puzzled on the number of plots made out of government lands.

On the other hand, depositors of money circulation schemes who pumped in their daily wages with the hope of better future are equally concerned over the fate of their investment.

The police raided main branch of Maitri here and seized several files. The police have crucial information about funds diversion to the Nakshatra company. Incidentally, the two companies belonged to the same family and owned by two brothers.

The private finance firm reportedly collected huge sums of money accounted for several crores of rupees from poor and daily-wage workers in the name of different money-growth schemes.

The company is stated to have slipped into serious financial crisis as the money was diverted to the real-estate firm. The company is reportedly facing difficulty in repayments because of the slump in real-estate for a long period. In this backdrop, the finance firm opted to shut some of its branches in the district much to the nervousness of the depositors. The police anticipated that the company may announce insolvency anytime and took action to avoid financial loss to depositors.  

SEBI moves SC for arrest of Sahara chief

By PTI - NEW DELHI 15th March 2013 02:41 PM

SEBI on March 15th moved the Supreme Court seeking arrest of Sahara  group promoter Subrata Roy Sahara and barring him from leaving the country after two companies of the group failed to comply with court's order to refund Rs 24,000 crore to its investors.

The market regulator mentioned the matter before a bench headed by Justice K S Radhakrishnan which agreed to hear its plea and posted the case for hearing in the first week of April.

SEBI urged the court to allow it to "take measures for arrest and detention in civil prison of promoter of Sahara Subrata Roy Sahara and the two male directors---Ashok Roy Choudhary and Ravi Shankar Dubey ---after giving reasonable opportunity of hearing."

SEBI also sought direction that their passports be deposited with the Supreme court.

Sahara group and SEBI are locked in legal dispute over the refunding of 24,000 crore by its two companies--Sahara India Real Estate Corporation (SIREC) and Sahara Housing Investment Corporation (SHIC)--to its investors.

Earlier, the last hope of Sahara group to get more time to refund Rs 24,000 crore to its investors was today dashed in the Supreme Court which dismissed its plea and pulled it up for not complying with the court's earlier order to return the money by first week of February.

A bench headed by Chief Justice Altamas Kabir, which had earlier extended the deadline to two companies of the group for refunding the money from November end to first week of February, had refused to grant more time.

SIREC and SHIC along Roy are facing contempt proceedings in the apex court before another bench which had on February 6 allowed SEBI to freeze accounts and seize properties of its two companies for defying court orders by not refunding the money to investors.

http://newindianexpress.com/business/news/article1502815.ece

CFW appeals to the government to implement the G.O.against Amway

Corporate Frauds Watch wrote a letter on 8-3-2013 to the chief minister of Andhra Pradesh and principal secretary of Home department to implement the G.O.M.S. No 178 of 2008 restraining Amway India from advertising in any media including internet regarding its illegal business model. This is in view of the latest judgement issued by the AP High Court refusing to entertain the plea of Amway India to review the judgement stating that there was nothing to review and the writ petition on the G.O. could be heard by the division bench. Now the division bench would hear the writ petition on the G.O.

Dated: 8/3/2013

To

The Principal secretary,

Home Department,

Government of A.P.,

A.P. Secretariat,

Hyderabad.

Respected Sir,

Sub:       Promotion of illegal Money Circulation Scheme by Amway – Non-implementation of G.O. restraining Amway from issuing advertisements to promote its illegal scheme – Reg,

Ref:        G.O.Ms.No.178 (Home General-B) Department, dated 15/9/2008.

*****

1.            I respectfully submit that we are Corporate Frauds Watch Society, Vijayawada which is a Non-Political, Non-profitable, Non-Governmental and Voluntary Organisation. We have been espousing the social cause of creating awareness against the illegal Money Circulation Schemes and frauds.

2.            It is bring to your notice that Amway India Enterprises has been promoting illegal Money Circulation Scheme in the guise of Multi-Level Marketing and looting and cheating the public.  On that a criminal case was registered against Amway and its members by C.I.D. in the year 2006.  On that Amway went to Hon’ble High Court of A.P. to declare its activities does not fall under the provisions of Money circulation scheme, but after due enquiry, the Hon’ble Division Bench of High Court of A.P. held that the scheme floated by the Amway falls under the provisions of Money Circulation Scheme in WP No.20470 and 20471/2006. Subsequently, Amway approached the Hon’ble Supreme Court of India but the Hon’ble Supreme court of India also dismissed the SLP filed by Amway. Thereafter CID police filed charge sheet in the criminal court.

3.            It is further bring to your notice that the Government of A.P. issued a G.O. cited in the above reference restraining the Amway from giving advertisements in print and electronic media. Amway again approached the Hon’ble High Court of A.P. but the Hon’ble High Court did not stay the operation of G.O. Supreme Court of India also did not stay the operation of G.O. issued by the Government of A.P. But unfortunately, the G.O. is not being implemented by the Police department though Amway is aggressively issuing advertisements and no stay was granted by any court against the operation of G.O. issued by A.P. Govt.

4.            Hence, I request to kindly look into the matter and initiate action in this regard in the interest of general public from being cheated, for which we are grateful to you sir. I am herewith attaching the G.O. cited in the above reference for kind perusal and information.

Yours faithfully,

(M.Shyam Sundar)

Secretary.

To                                                                                                                                                           Dated: 8/3/2013

The Chief Minister,

Government of A.P.,

A.P. Secretariat,

Hyderabad.

Respected Sir,

Sub:       Promotion of illegal Money Circulation Scheme by Amway – Non-implementation of G.O. restraining Amway from issuing advertisements to promote its illegal scheme – Reg,

Ref:        G.O.Ms.No.178 (Home General-B) Department, dated 15/9/2008.

*****

1.            I respectfully submit that we are Corporate Frauds Watch Society, Vijayawada which is a Non-Political, Non-profitable, Non-Governmental and Voluntary Organisation. We have been espousing the social cause of creating awareness against the illegal Money Circulation Schemes and frauds.

2.            It is bring to your notice that Amway India Enterprises has been promoting illegal Money Circulation Scheme in the guise of Multi-Level Marketing and looting and cheating the public.  On that a criminal case was registered against Amway and its members by C.I.D. in the year 2006.  On that Amway went to Hon’ble High Court of A.P. to declare its activities does not fall under the provisions of Money circulation scheme, but after due enquiry, the Hon’ble Division Bench of High Court of A.P. held that the scheme floated by the Amway falls under the provisions of Money Circulation Scheme in WP No.20470 and 20471/2006. Subsequently, Amway approached the Hon’ble Supreme Court of India but the Hon’ble Supreme court of India also dismissed the SLP filed by Amway. Thereafter CID police filed charge sheet in the criminal court.

3.            It is further bring to your notice that the Government of A.P. issued a G.O. cited in the above reference restraining the Amway from giving advertisements in print and electronic media. Amway again approached the Hon’ble High Court of A.P. but the Hon’ble High Court did not stay the operation of G.O. Supreme Court of India also did not stay the operation of G.O. issued by the Government of A.P. But unfortunately, the G.O. is not being implemented by the Police department though Amway is aggressively issuing advertisements and no stay was granted by any court against the operation of G.O. issued by A.P. Govt.

4.            Hence, I request to kindly look into the matter and initiate action in this regard in the interest of general public from being cheated, for which we are grateful to you sir. I am herewith attaching the G.O. cited in the above reference for kind perusal and information.

Yours faithfully,

(M.Shyam Sundar)

Secretary.

The bubble of finance company Abhaya Gold burst

Corporate Frauds Watch has been warning people for the last two years that the bubble of finance companies like Abhaya Gold, Akshaya Gold, Agrigold and others would burst once the new deposits trickle down.

On May 31, 2010, people were warned in this blog not to fall prey to the dubious promises of these companies.

The agents of these companies keep on inducing people to deposit their hard-earned money with these companies only to line their pockets with the commission the company paying them.

Now the bubble of Abahya Gold was burst on Wednesday in Nuzividu, the mango town in Andhra Pradesh. 

Agents and depositors of Abhaya Gold financial schemes went berserk when they ransacked the office of the private finance company at Nuzividu in Krishna district as news of their being duped up to Rs 40 lakh spread like wildfire here on Wednesday. They destroyed computer systems and furniture of the company were destroyed even as the police arrested  local branch manager Venkateswara Rao. 

Some of the vandals looted the premises in spite of presence of the sizeable number of policemen and people.

The victims found that Abhaya Gold has been carrying out financial transactions in gross violation of the guidelines framed by the Reserve Bank of India. The trust of agents and depositors suffered a deadly blow following the company’s failure to refund matured funds deposited under different schemes.   

Abhaya Gold has joined the big list of defaulter financial firms that mushroomed in and around Krishna district. The anger of the depositors who lost their hard earnings crossed all the barriers when the company failed to stick to its word to refund investment along with attractive returns.

The patience of depositors evaporated as the local office has been misleading the investors with false promises about repayment for four months. Every time they approach the office to claim the matured deposit, the Abhaya Gold staff have been convincing them to come next day, the victims alleged.

For details visit:
HansIndia News Paper dt 7-2-2013 vijayawada Page No.2