The Central Bureau of Investigation (CBI) has filed charge-sheets against three former directors and three West Bengal-based private companies in the court of a Chief Judicial Magistrate (CJM) in Krishnanagar, the headquarters of Nadia district, in connection with a chit-fund case.
The charge-sheets were filed under sections 120B (punishment of criminal conspiracy) reading with 409 (criminal breach of trust by public servant, or by banker, merchant or agent), and 420 (cheating and dishonestly inducing delivery of property) of the Indian Penal Code (IPC) and under various sections of the Prize Chits and Money Circulation Schemes (Banning) Act, 1978 and substantive offence thereof, said a CBI statement, adding that all the directors are in judicial custody.
An instant case was registered on November 28, 2014 against the directors of the said private company based in West Bengal under sections 420 and 406 (punishment for criminal breach of trust) of the IPC on the orders of the Supreme Court on May 9, 2014.
It was alleged that the accused had fraudulently induced investors to invest money by promising very high returns and also advertising false and fabricated business prospects of the company.
The accused cheated investors and misappropriated the money, said the CBI statement, adding that the company allegedly collected approximately Rs.2,741 crores from the investors.
Further investigation is continuing under section 173 (8) of the Code of Criminal Procedure (Cr.P.C) to examine larger conspiracy and money trail.
The CBI said the above findings are based on the investigation done by it and evidence collected.