68-yr-old ex-engineer held in Rs 85 cr ($13.5m) fraud case



Ex-engineer duped people of Rs 85cr, held

15 April 2015

The Times of India – Delhi Edition

A 68-year-old retired engineer, who duped several investors on the pretext of trading through National Stock Exchange and other financial institutions and cheated them of around Rs 85 crore, has been arrested by the economic offences wing. Police said the accused, Ashok Kumar, a gold medalist from IIT Roorkee, had share trading companies Kassa Finvest Pvt Ltd and Kassa Holdings and Consultants Pvt Ltd.He was evading police since a long time and a lookout circular was issued against him. “The accused took membership of National Stock Exchange and got into stock broking after his retirement from Indian Railways in 1995,” said BK Singh, DCP (EOW). The fraud was discovered on Friday when a complainant, Amish Agarwal, told police he was cheated of Rs 20 crore by Kumar and his aides.

Cops found that there were 28 similar complaints against Kumar and he had cheated people of Rs 39 crore. NSE told the cops that around 350 complaints of investors valued at Rs 85 crore have been received against Kumar’s companies.

68-yr-old held in Rs 85 cr fraud case

14 April 2015

Press Trust of India

New Delhi, Apr 14 (PTI) With the arrest of a 68-year-old man from Mehrauli, Economic Offences Wing of Delhi police today claimed to have cracked a case of misappropriation of about Rs 85 crore of several investors under the garb of trading through National Stock Exchange and other financial institutions.

The accused Ashok Kumar (68), who holds a B Tech degree from University of Roorkee (now IIT) and claims to be a gold medalist, was arrested recently.

According to police, Kumar also claimed to have topped the combined Engineering Services Exam conducted by the UPSC. He joined the Indian Railways in 1960 and worked at senior positions. He took retirement in 1995 and took the membership of National Stock Exchange and ventured into stock broking.

He opened companies by the name of KassaFinvest and Kassa Holdings and Consultants and opened branch offices at several places and employed several persons.

“The accused used to operate through a network of branches in major metropolitan cities of the country and contacted gullible investors through their executives. The investors initially invested small amounts, but kept on increasing their investments on inducement of high returns,” DCP (EOW) B K Singh said.

The money of the buyers would be kept as securities and they would be paid loyalty bonus. But they used the money in meeting the official expenses and for expansion of their business, making wrongful gains in the process at the cost of investors’ money, he added.

EOW had registered an FIR against him on Friday on the complaint of one Amish Agarwal who alleged that the Directors and other employees of Kassa Finvest, Kassa Holdings & Consultants and its sister concerns, in the garb of having authorization of financial activities by NSE, SEBI and others, have committed misappropriation of funds, breach of trust and cheating.

During enquiry, it was found that more than Rs 20 crores of the complainant were misappropriated.

It came to light that 28 other persons had filed complaints with similar allegations against the same accused, taking the total money involved in the case to Rs 39 crore.

“Further, a reference from National Stock Exchange of India was also received in which it has been alleged that about 350 complaints of investors valuing around Rs 85 crores have been received in their office against the alleged companies,” said Singh. PTI TAQ PRM


Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s