Coimbatore:A court in Coimbatore has convicted two directors of private firms with 27 years of rigorous imprisonment and slapped a fine of Rs. 171.74 crores on Friday, the CBI which was probing the case, said in a statement.
According to a statement issued by the CBI, that K. Mohanraj and Kamalavalli, both directors of private firms were convicted by the court. Describing the verdict as "one of the rarest convictions" the Central agency said that the depositors were duped to the tune of about Rs. 870.10 crores. " The total fine imposed amounts to Rs.171.74 crore," it added.
The CBI registered a case on June 15, 2011 as per an order of the Madras High Court against the accused. "It was alleged that M/s. Paazee Marketing Co., Tiruppur run by K. Mohanraj, Director, and others including other private companies floated various schemes between July 2008 and September 2009 and cheated various depositors to the tune of Rs. 870.10 crores (approx.) by collecting deposits from them on the false promise of high returns," stated the CBI.
The CBI further stated that the accused including Directors of the companies through a website fraudulently mobilized deposits and investments dishonestly promising that the same made by the public would be used in Forex Trading business.
"The accused further promised that huge dividend/interest would be paid in very short duration on the deposits so collected. The accused issued post-dated cheques drawn on various Banks where the accused opened accounts in the names of M/s. Paazee Forex Trading India Pvt. Ltd., M/s. Paazee Trading Inc. and M/s. Paazee Marketing Co," it added. A charge sheet was filed on October 7, 2011 and the trial court found the two accused and three companies and convicted them, stated the CBI.
