<p>The former chairman and managing director of JVG group has been arrested for cheating over one lakh investors of Rs 1,000 crore, police said on Tuesday. <br /><br /></p>.<p>The group promised to double or treble investors’ money, but declared bankruptcy and closed down in 1997.<br /><br />Vijay Kumar Sharma, 51, of Sainik Farms was a proclaimed offender, and Delhi Police had announced a cash reward of Rs 1 lakh for information leading to his arrest.<br /><br />“He floated over 17 companies with branches all over the country and duped people. He kept changing appearance to avoid easy identification,” said Ravindra Yadav, additional commissioner of police (crime and railways).<br /><br />While on the run from the police, Vijay frequently changed his hideouts in Delhi, Uttar Pradesh, Uttarakhand, Rajasthan and Maharashtra and avoided train and air journey, preferring to travel by road.<br /><br />“Most of the time, he used to stay in hotels and guest houses in small towns. He also frequently changed his mobile phones, SIM cards and cars to hoodwink investigating agencies,” Yadav added.<br /><br />Vijay’s run, however, came to an end over an input received by the anti-extortion cell of crime branch that he was frequently changing his location in Mumbai, Agra and Delhi. Acting on the specific input, a trap was laid near Kailash Colony Metro station on Monday. “He tried to flee on noticing a police team, but was apprehended around 5:30 pm near Bhairon Road,” Yadav said.<br /><br />A licensed .32 bore pistol and five cartridges were seized. Vijay told police about his involvement in several cases of cheating amounting to Rs 1,000 crore.<br /><br />Beginning of trouble<br /><br />JVG group’s troubles started in June, 1997 after the Securities and Exchange Board of India (Sebi) asked JVG Finance to refund Rs 45 crore it had raised from a public issue in March, 1997.<br /><br />A day after the issue had opened, the Reserve Bank of India issued a show-cause notice asking why JVG Finance should not be barred from accepting deposits as the group companies had already exceeded their deposit limits. By the time RBI conditionally cleared the issue after assurances from Vijay, the 70-day stipulated period for listing the shares had passed.<br /><br />In October 1997, the RBI banned all non-banking financial companies of the group from accepting deposits from public as they were found short of following the RBI guidelines. Soon after, the group closed its offices in the small towns of Maharashtra, Uttar Pradesh and Bihar.<br /></p>
<p>The former chairman and managing director of JVG group has been arrested for cheating over one lakh investors of Rs 1,000 crore, police said on Tuesday. <br /><br /></p>.<p>The group promised to double or treble investors’ money, but declared bankruptcy and closed down in 1997.<br /><br />Vijay Kumar Sharma, 51, of Sainik Farms was a proclaimed offender, and Delhi Police had announced a cash reward of Rs 1 lakh for information leading to his arrest.<br /><br />“He floated over 17 companies with branches all over the country and duped people. He kept changing appearance to avoid easy identification,” said Ravindra Yadav, additional commissioner of police (crime and railways).<br /><br />While on the run from the police, Vijay frequently changed his hideouts in Delhi, Uttar Pradesh, Uttarakhand, Rajasthan and Maharashtra and avoided train and air journey, preferring to travel by road.<br /><br />“Most of the time, he used to stay in hotels and guest houses in small towns. He also frequently changed his mobile phones, SIM cards and cars to hoodwink investigating agencies,” Yadav added.<br /><br />Vijay’s run, however, came to an end over an input received by the anti-extortion cell of crime branch that he was frequently changing his location in Mumbai, Agra and Delhi. Acting on the specific input, a trap was laid near Kailash Colony Metro station on Monday. “He tried to flee on noticing a police team, but was apprehended around 5:30 pm near Bhairon Road,” Yadav said.<br /><br />A licensed .32 bore pistol and five cartridges were seized. Vijay told police about his involvement in several cases of cheating amounting to Rs 1,000 crore.<br /><br />Beginning of trouble<br /><br />JVG group’s troubles started in June, 1997 after the Securities and Exchange Board of India (Sebi) asked JVG Finance to refund Rs 45 crore it had raised from a public issue in March, 1997.<br /><br />A day after the issue had opened, the Reserve Bank of India issued a show-cause notice asking why JVG Finance should not be barred from accepting deposits as the group companies had already exceeded their deposit limits. By the time RBI conditionally cleared the issue after assurances from Vijay, the 70-day stipulated period for listing the shares had passed.<br /><br />In October 1997, the RBI banned all non-banking financial companies of the group from accepting deposits from public as they were found short of following the RBI guidelines. Soon after, the group closed its offices in the small towns of Maharashtra, Uttar Pradesh and Bihar.<br /></p>
