Two directors of private company get 27 year jail term in cheating case

Hyderabad: Two directors of a private company which cheated public after collecting deposits to the tune of Rs 870 crore with the promise of higher dividends, have been convicted and sentenced to undergo 27 years of rigorous imprisonment and ordered to pay a fine of Rs 42.76 crore by a court in Tamil Nadu on Friday.

A press release from CBI said, the TNPID Court in Coimbatore sentenced K. Mohanraj and Kamalavalli, both directors of private firms to 27 years of jail term with fine of Rs. 42.76 crore each. The court had also imposed a fine of Rs. 28.74 Crore each on three private firms Paazee Forex Trading India Pvt Ltd, Paazee Trading Inc. 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. The total fine imposed amounts to Rs.171.74 crore.

The CBI had registered a case in June 2011 on the orders of the Madras High Court. It was alleged that Paazee Marketing Co., Tiruppur run by K. Mohanraj, Director and others including other private companies floated various schemes between July 2008 and September 2009 and cheated various depositors to the tune of Rs. 870.10 crore by collecting deposits from them on the false promise of high returns.

It was further alleged that the accused including directors of the companies through the website www.paazeemarketing.com fraudulently mobilized deposits and investments dishonestly promising that the same made by the public would be used in Forex Trading business. The accused further promised that huge dividend / interest would be paid in very short duration on the deposits so collected. The accused issued post-dated cheques drawn on various Banks where the accused opened accounts in the names of Paazee Forex Trading India Pvt. Ltd., Paazee Trading Inc. and Paazee Marketing Co. The CBI had filed a charge-sheet in October 2011.