Chit fund fraud accused runs out of luck, arrested

BHOPAL: Bhopal police on Thursday arrested a person, who is allegedly wanted in a chit fund fraud of hundreds of crores. The accused ran companies in many states, which were blacklisted by Security Exchange Board of India (SEBI). The SEBI directed Madhya Pradesh police headquarters to track operation of those associated with companies. The accused, Pushpendra Singh Baghel, a native of Shahdol, is now based in Noida. He was arrested from Indore and brought to Bhopal in evening. A police team would go to Noida for investigation, police added.Additional superintendent of police Riyaz Iqbal said Baghel was arrested for first time in MP. The accused operated in six states and had 18 branches in MP and norms were not followed. His arrest came in Indore where had had come to address investors. Baghel would be produced in court on Friday and is likely to be taken on police remand for arrest of other accused and recovery of money.Baghel and his family, including wife Pushpanjali and Ranvijay, Mrigendra, Dhirendra, Shailendra, floated two firms Sai Prakash Properties Development Ltd and Sai Prakash Organic Food Ltd in 2009 in cities of Madhya Pradesh, Uttar Pradesh, Rajasthan, Chhattisgarh and promised investors more return on their money than offered by any bank or financial institution.They issued post-dated cheque of their companies and told investors to get money with profit after showing the document. The accused deposited over Rs 100 crore in a similar fashion, but did not return money to investors. A person, identified as Ramesh Verma of Sehore and 37 others, lodged a complaint against them. They were duped of Rs 2 crore. Apart from Bhopal, an FIR has been registered against the accused in Kanpur in 2013 where Baghel was arrested, but was released in a week.SEBI in its order on January 6, 2015 stated prima facie it has been found Sai Prakash Organic Food Ltd. (the company) with registered office at 401, 413, Royal World, Sansar Chandra Road, Jaipur (Rajasthan) has been illegally raising money from public and banned the company from collecting fresh money from investors.A similar order was issued for Sai Prakash Properties Development Ltd on December 26 last year. After the two companies were blacklisted, the accused opened two more firms, one of which is headquartered in Gwalior and deposited around Rs 20 crore of investors.Between 2005 and 2009, Baghel was associated with another chit fund firm, which allegedly committed fraud of Rs 3,500 crore. This firm was blacklisted by SEBI. Apart from Noida and other places, accused owns properties in cities of Madhya Pradesh. He is associated with a news channel and construction firm, police added.