INDIA: Manoranjan Roy, the Chairman of Pincon Group, has been arrested by the Directorate of Enforcement (ED) in Kolkata on charges of cheating investors through a fraudulent money-doubling scheme known as the “Pincon Chit fund scheme.”
The scheme involved collecting deposits from the public and offering them false promises of money multiplication. Roy’s associate, Kaustuv Ray, who was arrested on July 18 in the same case, remains in judicial custody.
The Pincon Group allegedly collected a total of Rs. 638 crore from numerous investors under various schemes. The ED initiated an investigation under the Prevention of Money Laundering Act, 2002, based on a FIR registered by Khejuri Police Station, Purba Medinipur, West Bengal.
The FIR was filed against the Board of Directors and other officials of Pincon Group of Companies under various sections of the Indian Penal Code 1860 and the West Bengal Protection of Interest of Depositors in Financial Establishment Act, 2013.
ED’s investigation revealed that Pincon Group, led by Manoranjan Roy and associates, lured the public with high-interest rates upon maturity of deposits under schemes like MIS, FD & RD.
However, they failed to fulfill their promise and pay the investors their dues upon maturity. The group diverted the ill-gotten funds to various entities and individuals.
Kaustuv Ray, Roy’s associate, is the owner of Kolkata TV and Rose TV. The ED has previously attached properties owned by Ray and his companies due to various cases of money laundering. Ray is known to have close links with West Bengal Chief Minister and Trinamool Congress chief, Mamata Banerjee.
Manoranjan Roy, who has been previously arrested in November 2017, and his associates are believed to have raised over Rs. 1,600 crore from investors across several states through multiple shell companies.
This recent arrest is part of efforts to address financial irregularities and fraudulent activities in the country.
Also Read: Seven People, Including Two Nigerians Arrested on Charges of Drug Trafficking
