25/05/2016 11:19 PM IST | Updated 15/07/2016 8:27 AM IST

CBI Arrests Director Of Ponzi Firm Basil International

Investment scams word cloud
Kheng guan Toh via Getty Images
Investment scams word cloud

CBI on Tuesday arrested director of a ponzi firm Basil International from West Bengal who has allegedly duped people to the tune of Rs 3500 crore making it a scam bigger than Saradha Chit Fund Scam.

A medical practitioner PPS Sethi was arrested from Asansol in West Bengal by the agency on the allegations of cheating, criminal conspiracy and criminal breach of trust and diversion of fund, the sources said.

"The said accused named in FIR was the founder Director of the company which issued Product Scheme Cards and Preference Share Certificates against public collection without taking permission from the regulatory bodies. The company had collected Rs 3500 crore (approx) from the public," the agency spokesperson said here.

Markets regulator Sebi has ordered attachment of bank and demat accounts of Kolkata-based Basil International and its 14 directors for dues worth Rs 92 crore.

The attachment order comes after the firm and its directors failed to comply with the Sebi's directive, of repaying investors' money along with interest.

These entities had raised Rs 92 crore by issuing redeemable preference shares to investors without complying with the public issue norms.

In an order, Securities and Exchange Board of India (Sebi) has directed banks to attach all accounts including lockers held by these entities.

Similarly, the regulator has directed the depositories - NSDL and CDSL - to attach all demat accounts of the defaulters.

The watchdog has also asked for various details of the accounts held by the firms, including account statements.

The markets regulator has been given powers to attach properties and bank accounts, among other things, of persons and entities which have failed to comply with directions involving payment of penalties and other dues.

In February 2015, the regulator had ordered Basil International and its directors to refund the money raised from investors along with an interest of 15 per cent.

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