MUMBAI: Lakhs of investors are likely to have been cheated and conned of varying amounts ranging from a few thousand rupees to several lakh, by the Sri Mahakali Group, also known as SM Trade, Shree Mahakali Trade, Kreaz Life and other names in the Powai-Thane-Belapur belt, Thane police sources have claimed.
The group firms with similar names had commission agents active in Bhayandar, Vasai, Virar, Kalyan, Ambernath, Ulhasnagar, Pune, Nasik and even Goa, who were paid commissions ranging from 10 to 15 percent to rope in middle class investors eager to double or even triple their money within months and used photographs and names of known politicians to induce and impress gullible investors to part with cash on the promise of double returns within a few months.
The amount involved could be in excess of Rs 50 core to Rs 70 crore, sources alleged. The Thane police are looking into the matter and recording statements of complainants who have come forward.
Thousands of investors who lost their hard-earned money are reluctant to come forward as their financial sources could come under scrutiny.
Acting on complaints by several investors, the Thane police, Thursday registered a First Information Report (FIR) against the investment firm Sri Mahakali Group of Companies at the Shree Nagar police station for fraudulent investment schemes prohibited by law.
The FIR was registered under IPC sections for cheating, criminal breach of trust and other offences and the police are investigating the case.
SM Trade is allegedly operated by Ritesh Panchal aka Ritesh Sikligar who claims to deal in stock market trading and trades in Futures to make money, using options to hedge and insure his investment.
Initially, SM Trade and Panchal lured several retired people, mainly from the Indian Institute of Technology (IIT Bombay), Powai locality and nearby areas under the pretext of giving good returns on investments.
The firm operated in the Thane-Belapur area under a similar name. Panchal also launched an illegal chit-fund scheme under the name of Shree Mahakali Co-Op Credit Society Ltd and had mentioned the names of several senior BJP leaders including Manoj Kotak in his marketing brochures and invitation card.
Panchal allegedly also operates a company Kreaz Life, offering more than 1000 times the principal investment amount in a period of 3 to 6 months.
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