DIMAPUR, Oct 31 - Nagaland Police has arrested the Chairman-cum-Managing Director (CMD) of a company involved in money circulation business in the State.
According to an official release, the CMD of Everlight Realcon Infrastructure Limited (ERIL) was arrested and chargesheeted for duping and cheating unsuspecting depositors/investors and swindling crores of rupees. He was also wanted in other States in similar cases.
During the course of investigation, it was ascertained that the company (ERIL) was incorporated under the Companies Act 1956 and promised 100 per cent secured investment under two schemes such as advance products booking (APB) and redeemable preferential shares (RPS). Initially, the company had various products like electronics, household products, etc., against advance product booking but later the system of the company changed and it became more or less a money business offering huge returns in interest for investment under both APB and RPS.
Thus the company was engaged in a Ponzi scam accepting deposits from unsuspecting investors which the company was not allowed under law. The arrested MD admitted that the system of the company was a failure and that it had been circulating the money of the investors only.
According to SP (Crime) & PRO, Nagaland Police, M Tungoe, the modus operandi of the company was to establish its credibility by stating that it was engaged in various projects like hospitals, mines, infrastructure, etc., by organising programmes such as materials donations, blood donation camps, orphanage visits and by engaging State functionaries as chief guests in the company�s functions. However, during investigation, it was found that there were no such properties, assets or projects of the company and it was engaged only in fund mobilisation by promising huge returns. But the company failed to pay the investors later.
The police have cautioned citizens once again not to invest in any kind of schemes/products that promise huge returns in a short span of time. Any such scheme is illegal and therefore should be avoided at all costs, they said. Stating that even the interest rates offered by banks vary between 5 per cent to 9 per cent only, the release said that if any company or organisation offers anyone such schemes, the matter should be reported to the police immediately.