MD Booked for Cheating Investors

Recently Nagaland Police arrested and Charge sheeted the Chairman and Managing Director (MD) of the Company-Everlight Realcon Infrastructure Limited (ERIL)  Shri Biplap Kumar Dey for duping and cheating unsuspecting depositors /investors and swindling crores of rupees. The same Person is wanted in other States as well in similar cases. During the course of investigation it was ascertained that the company (ERIL) was incorporated under the Companies Act 1956 and promised 100% secured investment under two schemes (a) Advance Products Booking (APB) and (b) Redeemable Preferential Shares (RPS). Initially the company had various products like electronics, household products etc against Advance Product Booking but later, the system of the company changed and it became more or less a money business offering huge returns in interest for investment under both APB and RPS. Thus the company was engaged in a Ponzi Scam accepting deposits from unsuspecting investors which they were not allowed under law. It was also admitted by  the MD of the Company that the system of the company was a failure and that it had been circulating the money of the investors only. The modus operandi of the company was to establish its credibility by stating that the company was engaged in various projects like hospitals, mines, infrastructure etc.; by organizing programs such as materials donations, blood donation camps, orphanages visits and by engaging state functionaries as Chief guests in the Company’s functions. However, during investigation, it was found out that there were no such properties, assets or projects of the company and that it was engaged only in fund mobilization promising huge returns, which the company failed to pay the investors later.