CBI Court sentences 2 private firm directors to 27 years in jail; Slaps penalty of Rs.171.74 Crore in a Cheating Case

The Central Bureau of Investigation(CBI) Court has sentenced 2 private firm directors to 27 years in jail and slaps penalty of Rs.171.74 Crore in a Cheating Case.

The TNPID Court, Coimbatore (Tamil Nadu) had sentenced Shri K. Mohanraj & Smt Kamalavalli (both private persons & Directors of private firms) to undergo twenty seven years Rigorous Imprisonment (consecutively for all Sections) with fine of Rs. 42.76 crore each and imposed a fine of Rs. 28.74 Crore each on three private firms i.e. M/s. Paazee Forex Trading India Pvt Ltd, M/s. Paazee Trading Inc.& M/s. Paazee Marketing Co. in one of the rarest convictions in a case related to cheating the public depositors to the tune of Rs. 870.10 crore (approx.). The total fine imposed amounts to Rs.171.74 crore.

In accordance with the Hon’ble High Court of Madras’ directives, the CBI had filed a case against the accused on June 15, 2011. It was claimed that between July 2008 and September 2009, M/s. Paazee Marketing Co., Tiruppur, run by Shri K. Mohanraj, Director, and others, including other private companies, floated a number of schemes and defrauded a number of depositors out of approximately Rs.870.10 crore by collecting deposits from them under the false promise of high returns.

Furthermore, it was claimed that the defendants, including the directors of the firms, deceptively mobilised public investments and deposits through the website www.paazeemarketing.com by falsely claiming that they would be utilised for Forex trading. The accused further stated that substantial dividends or interest would be given on the deposits that were collected in a very short period of time. The defendants opened accounts in the names of M/s. Paazee Forex Trading India Pvt. Ltd., M/s. Paazee Trading Inc., and M/s. Paazee Marketing Co. and issued post-dated checks drawn on several banks.

On July 7, 2011, a charge-sheet was submitted against the defendants following a comprehensive investigation. Three companies and two defendants were found guilty and sentenced to prison by the Trial Court.