In one of the rarest convictions, a trial court in Coimbatore (Tamil Nadu) on Friday sentenced K Mohanraj and Kamalavalli (both private persons) to undergo twenty seven years rigorous imprisonment (consecutively for all offences) with fine of Rs 42.76 crore each.
The court also imposed a fine of Rs 28.74 crore each on three private accused firms —Paazee Forex Trading India Pvt Ltd, Paazee Trading Inc. and Paazee Marketing Company — in a case related to cheating the depositors to the tune of Rs 870.10 crore, the CBI said in a statement.
The total fine imposed amounts to Rs 171.74 crore.
The CBI had registered a case on June 15, 2011 on the orders of the Madras High Court against the accused.
It was alleged that Paazee Marketing Company, Tirupur, run by K Mohanraj, Director, and others, including other private companies, floated various schemes between July 2008 and September 2009, and cheated various depositors to the tune of Rs 870.10 crore by collecting deposits from them on the false promise of high returns, it said.
It was further alleged that the accused including directors of the companies through paazeemarketing.com fraudulently mobilised deposits and investments dishonestly promising that the same made by the public would be used in Forex Trading business.
The accused further promised that a huge dividend/interest would be paid in very short duration on the deposits so collected.
The accused issued post-dated cheques drawn on various banks where the accused opened accounts in the names of Paazee Forex Trading India Pvt Ltd, Paazee Trading Inc and Paazee Marketing Co. After investigation, a chargesheet was filed against the accused on October 7, 2011.
The trial court found two accused and three companies guilty and convicted them, it added.