Despite the Madhya Pradesh High Court order, two orders of SEBI and more
than seven FIRs in various states, Pune based Sai Prasad group had the
temerity to run their chit fund racket without any hindrance.
On 27th March, 2014, the district & session court of Thane
(Maharashtra) issued an Inquiry Order against M/s. Sai Prasad Foods
Limited/ Sai Prasad Properties Limited and its promoters and directors,
Mr. BalasahebBhapkar, Mrs. VandanaBhapkar and ShashankBhapkar. On the
basis of that order Nagar Police Station of Thane City has registered an
F.I.R. (No. 62/2014) and initiated investigation into the matter.
In July 2013, the Securities and Exchange Board of India (SEBI) had
passed two orders against both the companies of Sai Prasad group and
restrained them from collecting money from the public. (Click the below
link to see the detailed order):
SEBI’s Order against M/s. Sai Prasad Properties Limited;
SEBI’s Order against M/s. Sai Prasad Properties Limited;
In 2012, Madhya Pradesh High Court had ordered Central Bureau of Investigation (CBI) to conduct investigation against Sai Prasad Group and other similar nature companies, on the basis of that the CBI had conducted an investigation and revealed its findings as stated below:
“It is clear that the companies used to receive deposits from the
citizens by floating various types of plans viz. installment plan and
lump-sum payment plan against the sale of land units, plants and that of
livestock. The companies entered into contract with the investors and
they have committed offences under section 3 (1), 3 (2) and 3(4) of
Madhya Pradesh NiveshkokeHitonKaSanrakshanAdhiniyam 2000, Sec, 58B (5
and 5A), and 58 of the RBI Act, 1934, and Sec. 4, 5, and 6 of the Prize
Chits and Money Circulation Schemes (Banning ) Act, 11978 and Sec. 420
of Indian Penal Code.” (Click the below given link to read an Order of
MP HC)
Similarly more than seven criminal cases have been registered against
M/s. Sai Prasad Foods Limited/ Sai Prasad Properties Limited and its
promoters, directors, agents and branch managers in various states.
Details of few cases are as under;
F.I.R.No. 15/12,Banswqada Police Station, Rajasthan
F.I.R.No. 136/13,Talcher Police Station,Odisha
F.I.R.No. 114/13,Ainthpali Police Station,Odisha
F.I.R.No. 635/13,Sikandarabad Police Station, Dis.Bulandshahar,UP
F.I.R.No. ***/**, Kanpur Police, UP
M/s. Sai Prasad Foods Limited/ Sai Prasad Properties Limited and its
sister concerns indulge in fraudulent fund mobilization rackets. They
violate various rules, regulation and sections of the Securities and
Exchange Board of India Act, 1992 by running “Collective Investment
Schemes” illegally without permission of SEBI. They also violate the
Prize Chits and Money Circulation Schemes (Banning) Act, 1978,
Maharashtra Protection of Interests of Depositors (In Financial
Establishments) Act, 1999 and Rules, and Indian Penal Code, the
Companies Act, 1956 and the Reserve Bank of India Act, 1934.
The promoters and directors of the company are projecting that M/s. Sai
Prasad Foods Limited/ Sai Prasad Properties Limited and its sister
concern companies are involved in business of sale purchase of land and
foods products and are earning huge profits. But in fact, in the garb of
projecting various business modules, they are luring innocent and
uneducated people by offering heavy returns to invest their hard earned
money in all the fake and bogus entities of Sai Prasad Group.
SAI PRASAD GROUP is paying heavy commission to their agents and
middle men plus huge returns to investors, which is commercially not
viable in such types of businesses. The group is claiming that they are
paying heavy returns out of company's heavy profit, but in fact they are
paying amount to an old investor, which they collect from the new
investor and thereby circulating the money amongst the investors. These
types of business practices creating criminal liabilities are punishable
under the provision of and regulation of the Prize Chits and Money
Circulation Schemes (Banning) Act, 1978, Maharashtra Protection of
Interests of Depositors (In Financial Establishments) Act, 1999 and
Rules, and Indian Penal Code.
Sai Prasad group is running joint ventures. But none of the investors
get any land in return. They are in fact happy to get the money at the
end of the maturity period. When the cycle of payments stops, the
hard-earned money of the uneducated villagers will go down the drain.
The Sai Prasad Group had recruited around 12 lakh commission agents of
various ranks, to lure the investors. They are working part time/full
time and convincing small investors by offering heavy returns. Agents of
the group systematically join hundreds of investors in their unit and
motivate them by giving a speech during a function or meeting organized
at different venues.
Agents have received healthy commission including gifts like
two-wheelers and even four-wheelers for recruiting people to join the
scheme.
Court orders and investigations have failed to hinder the activities of
Sai Prasad group in running their illegal chit fund scheme. Their Ponzy
scheme is one such scheme.
Alert citizens should lead the way in creating awareness about this
fraud and prevent innocent or ill-advised people from joining this chit
fund.
Jai Hind,
Mohammed Usman,
President,
Forum for Fairness in Democratic System,
MUMBAI
Cell# 09322273393
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