CBI ARRESTS AN MP IN AN ON-GOING INVESTIGATION OF A CHIT FUND CASE

Press Release
New Delhi, 03.01.2017

         

      The Central Bureau of Investigation has today arrested a Member of Parliament in an on-going investigation of a Chit Fund case.

     The instant case was registered on 05.06.2014 U/s 420/408/409/120-B/34 of IPC and Sections 4, 5 & 6 of Prize Chits & Money Circulation Schemes (Banning) Act, 1978, on the orders of the Hon’ble Supreme Court dated 09.05.2014 passed in Writ Petition No. 401 of 2013 and 413 of 2013 against then Chairman of a private Group of Companies and others on the allegations that the said company had collected around Rs. 17,000/- crore illegally from general public after enticing them with false promise of paying higher rate of interest.

      After investigation, chargesheet was filed on 07.01.2016 u/s 420,409, 120B of IPC and 4 & 6 of Prize Chits & Money Circulation Schemes (Banning) Act, 1978 against four persons including then Chairman; then Managing Director; then Director & Ex. Director of said Group of Companies and three private companies of said Group. Further investigation is continuing as per provisions of Section 173(8) Cr.PC to examine the roles of other accused persons to find out aspects of larger conspiracy and money trail.

      The arrested accused will be produced before the Competent Court.


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