Investors duped of Rs 5 cr, cheat held

Over 150 investors were allegedly duped of Rs 5 crore after being promised a fixed sum of Rs 14,000 each for three years if they paid for the purchase of garbage-lifting tippers. The 57-year-old accused has been arrested, police said.

Over 80 people have already approached police with their complaints so far.

Each of them had paid Rs 3.60 lakh to Raj Kumar Jain for the purchase of the vehicles after he told them that he had entered into a contract with the MCD.

Police said Jain had failed to purchase the sufficient number of tippers after he entered into the contract with the MCD.

Earlier, he had already approached the victims to make them invest in his project.
However, as he failed to honour the agreement, the MCD scrapped its contract with his company.

“The accused deliberately neither informed the investors about the termination of contract nor did he return the money to them,” police said in a release on Monday.

The victims, in their complaints to police, said he did give them some money as instalments for a few months as promised. But soon he stopped paying and even refused to return the vehicles to the investors.

There were also victims who had invested in two or more tippers.

The first of these victims had approached police in 2012.

“He avoided judicial scrutiny and had not been attending the proceedings of liquidation initiated by the Delhi High Court. He was subsequently declared a proclaimed offender,” police said. They are now attempting to recover the cheated amount from him.

Jain is a BCom graduate and had been dealing in two- and three-wheelers since 1981.