In June 1997, SEBI asked JVG Finance to refund Rs 45 crore it raised through a public issue earlier that year. RBI banned all non-banking financial companies of the JVG Group in October 1997 from accepting deposits from the public, as they were found lacking in following RBI guidelines.
“Soon, JVG downed shutters of several of its offices in small towns of Maharashtra, Uttar Pradesh and Bihar. The closing of the offices created panic among depositors. CMD of JVG Group Vijay Kumar Sharma was arrested from Mumbai in 1999 and spent 16 months in jail before he got bail from Supreme Court,” said ACP (Crime) RS Yadav.
In 2005-06, Sharma once again allegedly cheated a large number of people by promising them residential accommodation by incorporating M/s Vian Infrastructure ltd and M/s PSG Developers & Engineers ltd.
“They collected about Rs 500 crore from the public. He once again vanished. He was not attending courts after 2010 and was declared a proclaimed offender,” said Yadav, adding that in April last year, the Supreme Court cancelled his bail and directed him to surrender.