Chhattisgarh: 2 runaway directors of chit fund firm held after 5 yrs

Two then directors of a chit fund company accused of duping investors in Chhattisgarh of crores have been arrested, five years after the alleged fraud came to light and a case was registered, police said on Sunday.

The duo had served as directors of BN Gold Real Estate and Allied Chit Fund Company which ran its operations from 2009 to 2015 in Ambikapur town of Surguja district, said Rahul Tiwari, Station House Officer (SHO), Gandhinagar police station.

They had allegedly embezzled Rs 9.83 crore, he said.

While Gopal Das Manikpuri (55) was picked up from his native village Kodhari in Korba district, Chaitram Kewat (55) was held from Malhar village in Bilaspur district on July 17, the SHO said.

Another accused director of the company had died in 2011, he said.

The firm, which had set up its office in Ambikapur in 2009, allegedly lured residents of Surguja and neighbouring districts on the promise of doubling their money in a short span of time.

The company received about Rs 9.83 crore from 5,806 investors during its operation, the SHO said.

When depositors did not receive returns, they complained to the district administration in 2015 following which the company's operations were shut, he said.

A case had been registered under sections 420 (cheating) and 34 (common intention) of the IPC and provisions of Chit Funds Act.

"Efforts are on to trace some other accused in the case, who were then associated with the company," the police officer said.