The Economic Offences Wing (EOW) on Wednesday recovered ornaments worth Rs 65 lakh from the bank lockers of directors of KBC Multi Trade and Resorts Pvt Ltd. On Tuesday, the EOW had recovered gold coins worth Rs 2 crore, which the promoters possibly used to gift agents who made them good profits.
Readers may recall that, in 2014 promotors Bhausaheb Chhabu Chavan and his wife Arti Bhausaheb Chavan allegedly lured greedy investors by promising triple returns in three years. The scheme was first lapped up by the rural people and then by investors from the cities. Farmers from Chandwad Niphad and other drought prone areas had invested heavily in the company along with people from Aurangabad and Parbhani.
The company was able to fleece about Rs 210 crore from 7,500 investors. The police has recovered property worth Rs 80 crore so far. Earlier cases were registered against the company in Marathwada but investors in Nashik continued to with their business. The police then raided the office on the basis of an anonymous letter.
After the fraud was exposed in 2014, Chavan and his wife fled to Singapore. They returned last week and were arrested at the Mumbai Airport. They are presently in police custody.
Considering the seriousness of the offence, the government decided to entrust the investigations to the Economic Offences Wing (EOW) of Nashik police. The issue was also raised in Parliament by MP Kirit Somaiya in 2014.
The matter had come to light on 14 July 2014 when a KBC Multi Trade agent Sagar Popat Nikam (25), and his mother committed suicide by drinking poison due to alleged harassment by anxious investors.
