Posted: Posted Date – 12:55 AM, Sat – 27 Aug 22
Hyderabad: Two directors of a private company who deceived the public after collecting deposits to the tune of Rs 870 crore with the promise of higher dividends, have been found guilty and sentenced to serve 27 years rigorous imprisonment and ordered to pay fined Rs 42.76 crore by a Tamil Nadu court on Friday.
A CBI press release says that the TNPID court in Coimbatore sentenced K. Mohanraj and Kamalavalli, both directors of private companies, to 27 years in prison with a fine of Rs. 42.76 crores each. The court had also imposed a fine of Rs. 28.74 Crore each on three private companies Paazee Forex Trading India Pvt Ltd, Paazee Trading Inc. Paazee Marketing Co. in one of the rarest convictions in a deception-related case from public depositors to the tune of Rs. 870.10 crores. The total fine imposed is Rs.171.74 crore.
The CBI had registered a case in June 2011 by order of the Madras High Court. It was alleged that Paazee Marketing Co., Tiruppur, headed by K. Mohanraj, Director and others including other private companies initiated various schemes between July 2008 and September 2009 and deceived various depositors to the tune of Rs. 870.10 crores by collecting deposits from them on the false promise of high returns.
It was further alleged that the defendants, including the directors of the companies through the website www.paazeemarketing.com, fraudulently mobilized deposits and investments by dishonestly promising that the same facts by the public would be used in the Forex Trading business. The accused further promised that huge dividends/interest would be paid in a very short time on the deposits thus collected. The accused issued post-dated checks drawn on various banks where the accused opened accounts in the name of Paazee Forex Trading India Pvt. Ltd., Paazee Trading Inc. and Paazee Marketing Co. The CBI filed a complaint in October 2011.