New Delhi, Dec 29:

Cracking a whip on illegal money pooling schemes, markets regulator SEBI on Tuesday asked two companies —— Multi Purpose Bios India and Prayas Projects India —— and their directors to refund money collected from the public.

According to the Securities and Exchange Board of India (SEBI), Multi Purpose Bios collected Rs. 5.97 crore from more than 1,460 people through redeemable preference shares between financial year 2007-08 and 2011-12.

While, Prayas Projects raised Rs. 86.32 lakh from 154 investors through issue of non-convertible debentures during 2011-12 and 2012-13.

The refund has to be made along “with an interest of 15 per cent per annum compounded at half yearly intervals, from the date when the repayments became due to the investors till the date of actual payment,” SEBI said in two similar worded orders.

According to the market regulator, the funds raised by the two Kolkata-based companies through the issues amounted to a public offer as it was made to more than 49 persons and as a result required mandatory listing on the stock exchanges.

The regulator has directed the companies and its directors to “jointly and severally, shall forthwith refund the money collected by the company through the issuance of redeemable preference shares“.

Besides, the companies and its promoters and directors have been barred from the securities markets for four years and the ban will continue till the completion of refund to investors.

In case Multi Purpose Bios India and Prayas Projects India fail to comply with these directives, SEBI would make a reference to state government or local police to register a case against the company for fraud.

Besides, the Ministry of Corporate Affairs would initiate the process of winding up of the company.

The regulator said that the order will come into force with immediate effect.

call money racket suicide andhrapradesh

Saiprasad investment scam - 2000 crores fraud by Bhapkar - cheated 20 lacs peoples

Saiprasad Properties limited
Saiprasad Foods Limited

Cops raid Ponzi firm in Phulbani

BHUBANESWAR: Police on Sunday seized several documents during a raid on Pune-based Sai Prasad Properties Ltd's Phulbani branch office in Kandhamal district and detained its accountant. The accountant was identified as Rakesh Pradhan, police said.

Police swung into action after people informed the police that the officials of the Ponzi firm were trying to transfer its documents from the locked office in Phulbani. The branch office of the company was locked in February 2013 when the district police launched raids on chit fund companies.

"The preliminary investigation revealed that the company was not collecting deposits after the raids started in February 2013," said SP (Berhampur) K V Singh. Before that the company might have collected money from investors, he said.

"We are trying to find out the amount of deposits, number of depositors and area of operations," said IIC, Phulbani Town police station, Umakanta Pradhan.

The names of these 5 "Indian nationals" have been made public in Switzerland's Federal Gazette with regard to details sought about them by the Indian authorities.

Industrialist Yashovardhan Birla, City Limousine chairman Sayed Mohamed Masood and his wife Chand Kauser Mohamed Masood are among five Indian nationals with Swiss bank accounts whose names have been made public in Switzerland’s official gazette with regard to ongoing tax probes in India.

(According to PTI, the other two are Gurjit Singh Kochar, son-in-law of late realty baron Ponty Chadha, and Delhi-based businesswoman Ritika Sharma).

On Monday, Sneh Lata Sawhney, wife of Sawhney Tyres managing director Bhushan Lal Sawhney, and Sangita Sawhney were named.

Details of the money lying in Yashovardhan Birla’s account have not yet been made public — his name figured in the list of HSBC, Geneva account holders, published in February this year by The Indian Express as part of its ‘Swiss leaks’ investigation.

When The Indian Express sought Birla’s comment, a spokesperson for the Yash Birla Group, in an email response, said Birla had no individual bank account in his name or under his control. This, the spokesperson said, had been explicitly confirmed earlier by the Swiss bank in writing and the same had already been communicated to Indian tax authorities.

In January 2014, the Income-Tax department had searched the offices of the Yash Birla Group for alleged tax evasion.

Following the I-T probe, the economic offences wing (EOW) of the Mumbai police filed an FIR against Birla Power Solutions Ltd, a Yash Birla Group company under sections 420 and 120-B of the Indian Penal Code for allegedly defaulting on repayment of fixed deposits to its investors. The company, according to police, had also defaulted on interest payment to investors. Police said the company owed around Rs 214 crore to 8,800 investors. Immovable properties of Birla Power Solutions, worth the same amount, were attached. The company said it raised money and paid investors.

Based on the EOW investigations, the Enforcement Directorate (ED) launched a probe under the Prevention of Money Laundering Act (PMLA). On January 19 this year, the adjudication authority of ED, in an order, said the company was diverting investor funds raised for a power project to unrelated land transactions.

According to the ED order, Birla Power Solutions Ltd, over a period of four years between March 2009 and March 2013, diverted Rs 180 crore of investor funds to six other group companies through multiple transactions involving eight bank accounts. Rejecting the allegations made by ED, the Yash Birla Group challenged the order before the appellate tribunal.

In the case of Masood, the ED had sought repatriation of funds in the case of Masood and his wife.

A senior ED official said at least US $1.25 million has been found in two Swiss accounts maintained by Masood and his firm.

“After obtaining information from the Swiss authorities on Masood, we have now placed a request with the Swiss government for repatriation of the money lying in Masood’s accounts. We are hopeful that our request, which is currently pending, will be accepted soon,” the ED official said.

Phone calls and text messages to Masood did not elicit a response until Tuesday evening.

The ED has registered a case under the PMLA against City Limousine and Masood for running an alleged ponzi scheme. It is alleged that two City Group companies, City Limousine and City Realcom, collected over Rs 500 crore from investors, promising unrealistic returns. The companies later defaulted on payment to investors, the ED said. The ED has attached movable and immovable properties of the companies and promoters to the tune of Rs 150 crore.

Indian names are being published in the Swiss federal gazette as a result of domestic references being sent by Indian tax authorities.

The references for which notices are being dispatched by Swiss authorities, following a change in Swiss procedural laws, include cases related to Indian HSBC Geneva account holders as well as others against whom authorities had established that assets existed in Switzerland but were not declared for taxation. The provisions of the Double Taxation Avoidance Treaty, signed by the two countries in 2011, paved the way for the current action.

Officials in the Central Board of Direct Taxes (CBDT) said domestic references, with all documentation attached, had been sent to Switzerland for all 628 HSBC account holders, which had been received by India, as well as a large number of other references in evasion cases.

This number, sources said, could well be over 100 cases involving a large number of Indian businessmen and celebrities.

Under pressure from India and other countries, Swiss federal offices began dispatching notices in April to suspected tax evaders, asking them if they had objection to their account or asset purchase details being handed over to India. Recipients of notices have been given a month to send in replies. Should they decline authorisation for release of information, India has the right to appeal.

ED to attach $14 mn in bank accounts of City Limousine chairman in Singapore

ED, which probes forex violations, had sent its team to Singapore in July this year to attach over $26 million lying in Masood’s accounts in two other banks.

The Enforcement Directorate (ED) is set to attach $14 million lying in two bank accounts of City Limousine chairman Sayed Mohamed Masood in Singapore. Masood is facing charges of money laundering, and the Singapore government has granted permission to attach his assets, according to ED officials. The accounts are in the branches of Bank Julius Baer and UBS.

The ED is probing a case under the Prevention of Money Laundering Act (PMLA) against City Limousine and Masood for running an alleged ponzi scheme. It is alleged that two City Group companies — City Limousine and City Realcom — collected over Rs 1,000 crore from thousands of investors across the country by floating car rental schemes and promising unrealistic returns of up to 48 per cent on investments. In 2009, the companies defaulted on payment to investors and more than 42,000 cheques issued by it were dishonoured, the ED said.

In May, Masood and his wife Chand Kauser Mohamed Masood were named in Switzerland’s official gazette with regard to ongoing tax probes in India. They are among five Indian nationals with Swiss bank accounts whose names have been made public.

“This will be the first full attachment of overseas assets in a PMLA case. This fresh attachment in this case will take the total attached amount to about $40 million,” an official familiar with the development told The Indian Express.

ED, which probes forex violations, had sent its team to Singapore in July this year to attach over $26 million lying in Masood’s accounts in two other banks. In 2013, the competent authority in Singapore froze all his accounts following a Letter Rogatory (LR) by ED asking for its cooperation in the investigation.

LR is a formal request to a foreign court seeking judicial assistance in investigating an entity in another country.

Apart from this, the Swiss government that already allowed ED to attach $1.25 million in two Swiss accounts maintained by Masood and his firm in 2014, has now agreed to repatriate the funds to India and has told the enforcement agency to start the process for repatriation, according to ED sources. “The agency will now submit an application before the trial court seeking its nod for repatriation of funds,” said an ED official who did not wish to be named.

Prior to the ED probe, several FIRs were registered against Masood and his companies in Mumbai, Karnataka, Rajasthan, Andhra Pradesh, Tamil Nadu and Delhi for criminal conspiracy, cheating and breach of trust. In Chennai alone, at least 35,000 investors have filed claims with the Tamil Nadu Economic Offices Wing.

In October 2012, ED had issued 16 orders to attach moveable and immoveable properties worth over Rs 200 crore of the City Group of Companies, Masood, his associates as well as family members in India.

Earlier this year, the Supreme Court transferred 132 cases pending against Masood in various courts across the country to a special court in Mumbai that deals with PMLA. The aim was to expedite trial in the City Limousine case. Masood is currently lodged in jail.​

    I disagree with Mr. Nixon, that it is his duty to write all the positive things about their company. that is good that you are a very good employee. but it is true that SGFX Financial Limited, Belapur. Mumbai, first you people have tie-up with EToro, suddenly without informing to your clients you have separated and broken tie up with ETORO Cyprus. Lot of your Clients who have deposited in the name of SGFX Financial, from last 15 days their money had been strucked between ETORO and SGFX Financial, from your side there is no response to the clients that the money will be returned back to them or not. whenever some one is complaining, SGFX people are just making some BLAH BLAH excuses, why should the INVESTORS have to SUFFER. you people don't even bother about their pain. and I will give -10 to your customer service, they are the worst when coming
    to customer service, when customer had INVESTED, if any problem happens they even don't bother to receive their calls. then where should the customer go ask. I think INVESTING MONEY with SGFX Financial is very RISKY,

    PRESENTLY I AM THE ONE WHO IS SUFERRING BECAUSE OF INVESTING WITH SGFX FINANCIAL CO IN. BELAPUR, MUMBAI

    I'LL ADVISE ALL OF YOU, WHO EVER WANT TO INVEST WITH SGFX FINANCIAL CO INDIA, BEWARE, THINK 10,000 TIMES AND INVEST WITH THEM, THEY ARE VERY RISKY

How a Mumbai couple created a Rs 7 lakh crore dubious firm SGFX Financials

 There is nothing business like about Central Business District (CBD) Belapur. Beer shops, Malwani seafood restaurants and electronics goods showrooms dot this quaint locality of Navi Mumbai, which was once an experiment to recreate Nariman Point in Navi Mumbai. At the heart of CBD Belapur is Sharda Terraces, a high-rise which houses branches of SBI, Yes Bank, Kotak Mahindra Bank and Dhanlaxmi Bank. Seven floors above lies an office locked and gathering dust. This office used to be the headquarters of SGFX Financials — a company that was incorporated in the UK on December 13, 2010 and was run by a couple named Sarvesh Narendra Gade and Shahanaz Ashraf Bharde.

Between January and June 2011, the value of SGFX's shares, which was dissolved on November 27, 2012, is estimated to have shot up to £70 billion, or Rs 7 lakh crore —more than twice the valuation of India's largest company, Reliance Industries, which incidentally has a swank office 15 kms away. On Thursday, SGFX was thrust back in the spotlight when Nationalist Congress Party (NCP) filed a complaint with the Economic Offences Wing after party chief Sharad Pawar's name surfaced as a director in the company. Pawar claims to have no connection with SGFX. He also alleges that Bhadre and Gade "falsely and fraudulently' submitted his name without his knowledge and incorporated the dubious firm.



A brochure of the company

Companies House, the British equivalent of India's Registrar of Companies, and Companies Made Simple, a London-based company that represented SGFX, offered insights, though slightly contradictory, into how this could have happened.



Entrance to Gade's stated residence

Companies House said proof of ID is not required when filing documents directly with the department. "We just carry out basic checks to make sure that our incorporation documents have been fully completed and signed," said Jo Johnstone, a member of the Companies House Press Team. But "when filing through an agent such as Companies Made Simple, then I believe they require a proof of ID", he said.

But Grant Beeming, the operations manager of Companies Made Simple, which offers services to startups and small businesses, said his company would have had no interaction with the individuals concerned as it was an online provider. "We request or require due diligence documents if there represents an ongoing business relationship."






Pawar isn't the only one crying fraud. In early 2014, Charan Singh (name changed), a Ludhiana-based businessman, got a call from an employee of Online Currency Exchange, or OCX (another company run by Bhadre and Gade that was incorporated in mid-2013) asking if he would be interested in making money through forex trading. Singh wasn't sure about the company's antecedents and balked.








When the company provided him a reference to another customer who had made money, Singh agreed to invest $5,000. For three months, his returns were healthy and on time. Singh invested another $5,000. His payments stopped coming the next month. When he called to enquire, his customer relationship manager informed him they were "shifting office". Two weeks later, OCX's board-line numbers went dead. Distraught, Singh visited Navi Mumbai, made the rounds of a few police stations, and eventually gave up except for occasional rants on online complaint boards.






Scores of other people say they too were conned. A four-page brochure of SGFX that ET accessed says that "strategies coupled with years of experience, past performance has allowed investors to feel secure". On the cover, it also features a photograph of Gade, lost in deep thought, peering seriously into a laptop screen as a couple of blond haired foreigners seem to making a presentation. On SGFX's Facebook page, a post from March 2012 incentivises customers to deposit "Rs 5, 10, 25 or 50 + lakhs" to receive your "FREE Samsung gift from our range of smartphone's (sic) and notepad's (sic)."






Staff at the Sharda Terraces, where SGFX was based between 2010 and 2013, paint a picture of a couple who loved the good life. "They had three fancy imported cars. Shahanaz was the boss and she had a nasty temper. They employed about 50-60 people and they were paid on time," said Prabhat Amte, who would do odd jobs for the duo and still works in the same premises. The company, however, folded up overnight and still owes Rs 10,000 to Amte for the menial jobs he had done. He said once the company shut down, a few investors who had been defrauded would come to enquire about the couple's whereabouts. The police never came.

About 5 kms from Sharda Terraces is a small clothes shop in an area called Kharghar. The owner Jignesh Shah (name changed on request) said he had planned to start a furniture studio in partnership with Bharde and Gade. Shah's wife even registered a company and Gade borrowed Rs 2.5 lakh from him. "When I asked Gade for his share of the investment, he threatened saying that he was very well connected and would harm my family," says Shah, adding that Gade, 30, would often drop names of leaders in the NCP party, including that of Pawar.

When ET visited Vaikunth Apartments in the Kamothe area of Navi Mumbai, the other address (declared by Bharde) shown in the Companies House records, long-term residents vouched that nobody by that name had ever lived there. Sarvesh Gade's stated address - the Leela Madhav complex in the Panvel locality of Navi Mumbai - turned out to be a dilapidated, lower middle class dwelling. A resident said crime branch officials had turned up on Friday to enquire about Gade. He also revealed that Gade's parents - who had moved out of town a few days ago — had snapped ties with him after his marriage with Bharde who was ten years his senior. The resident also confirmed that officials from various banks would occasionally drop in enquiring about Gade and that this was the first time that police had come.

A senior police official said the case is being investigated and that they had not been able to trace the couple. The official, however, was not willing to say whether the FIR by Pawar had been registered or not.

The LinkedIn profile of Sarvesh Gade now has him as national head, LiteForex Investments Limited, UAE.

UK agent disputes SGFX founder’s claim on Sharad Pawar

(Grant Beeming, operations…)

NEW DELHI: Companies Made Simple, a London-based company that represented the controversial SGFX Financials in the UK, has said its customers fill applications themselves and who they appoint to various positions is completely up to them, challenging the claims of SGFX founder Sarvesh Narendra Gade that the inclusion of Nationalist Congress Party (NCP) chief Sharad Pawar as a director in his company was a technical glitch.

Grant Beeming, operations manager, Companies Made Simple, which offers services to startups and small businesses, said his company only provides online forms and the customer fills them out themselves. "At no point do we fill out forms or submit the applications ourselves to Companies House."

Companies House is the British equivalent of India's Registrar of Companies.

Last Thursday, the NCP filed a complaint with the Economic Offences Wing against Gade and wife Shahanaz Ashraf Bharde, directors of SGFX, for "falsely and fraudulently" submitting Pawar's name without his knowledge while incorporating the company. Pawar claims to have no connection with SGFX, a company incorporated in the UK in 2010, whose share value is estimated to have shot up to £70 billion, or ?Rs 7 lakh crore.

On Saturday, ET published a report on how SGFX, which was dissolved in November 2012, was created, tracing the antecedents of Gade and tracking down the addresses given by SGFX in the Companies House records. Pawar, the report established, wasn't the only one crying fraud.

Later on Saturday, The Times of India reported that Gade and Bharde offered a public apology to Pawar during a press meet. Gade claimed he was unaware of how Pawar's name figured as one of directors of the company and said they will initiate action against Companies Made Simple, according to the report.

EOW complaint for naming Pawar as director in UK company

The Nationalist Congress Party has filed a complaint with the Economic Offences Wing (EOW) here after Sharad Pawar's name figured as a director in a London-based company SGFX Financials, with which he claims to have no connection.

NCP spokesman Nawab Malik said Pawar had nothing to do with the company and does not know the individuals involved in the firm.

"Pawar's name has been used fraudulently with malafide intentions and we want the police to find out the truth. So, a complaint with the EOW has been filed yesterday after taking legal opinion," Malik said today.

In his complaint, the former Union Minister has said that he did not authorise anyone in the UK firm to name him as director.

Reportedly, Pawar has named two directors of the company--Sarvesh Narendra Bharde and Shahnaz Ashraf Bharde-- as the two individuals who 'falsely and fraudulently' submitted his name without his knowledge and incorporated the dubious firm.

The value of the company shares is said to have shot up from Rs 70 crores in January 2011 to Rs 7 lakh crores in June 2011.

According to SGFX, Pawar was made director of the company on December 13, 2010 till his resignation on January 5, 2011.

SGFX company director Sarvesh Gade speaking to ABP Majha



एनसीपी नेता शरद पवार ने मुंबई पुलिस की आर्थिक अपराध में शाखा में ब्रिटेन की एक कंपनी के 2 निदेशकों के खिलाफ लिखित शिकायत की है। पवार का आरोप है कि इंग्लैंड की कंपनी SGFX में उन्हें  निदेशक के तौर पर दिखाया गया है, जबकि उनसे कभी उसकी अनुमति नहीं ली गई। यहां तक कि उनके हस्ताक्षर भी फर्जी किए गए हैं।

कंपनी के शेयर 70 करोड़ से बढ़कर 7 लाख करोड़ के हुए
पवार ने अपनी शिकायत में लिखा है कि कंपनी में उन्हें दिसंबर 2010 से जनवरी 2011 तक डायरेक्टर के तौर पर दिखाया गया था और उसी दरम्यान कंपनी के शेयर की कीमत 70 करोड़ से बढ़कर 7 लाख करोड़ हो गई थी। मामले में मुंबई पुलिस ने तो चुप्पी साध रखी है, लेकिन एनसीपी के प्रवक्ता नवाब मलिक ने खबर की पुष्टि करते हुए बताया कि 'एक वेब पोर्टल के जरिए यह जानकारी आई थी। शरद पवार ऐसी किसी भी कंपनी में डायरेक्टर नहीं है। किसी ने उनका नाम बदनाम करने की कोशिश की है।'

Most of these CHIT funds, money market companies operating in Bengal, Bihar, Jharkhand,

Orissa, Tripura, Assam are on hotlist/blacklist by SEBI/RBI

Aashray International
Abyss Assam Group Co
Adorable group
Aishwarya group
Alchemist Group
Alliance Vision Marketing
Annex Infra
Apurba group
Arya Mass Parivar
Aryarup
Aspen/Amez
Baishakhi group
Bardhaman Sunmarg
Basil International
Basil International Ltd
Daffodils Group of Companies
Digstar projects
Fortuneer
G group
GAML
Icore
Infinity realcon
Jeevan Suraksha
Kalpataru
KP Group Gujrat
Leaps and Bounds
Mangalam Group
Maple Infra
MPA group
MPS
Natureway Network Marketing
NVD
Pancard Club
Paras marketing
Prayag Group
Qnet
Rahul Group
Remac India
Rose Valley
Sabyasachi group
Sahara
Saradha Group
Smart Bengal
Sumangal Potato Schemes
Sunmarg
Suraksha
Suzlon
Swargabhumo Siliguri
Swarna Infra
Tower Group
Unipay 2 U
URO group
Vibgyor Group

Instructs firm not to divert any funds raised to date and furnish details sought by the regulator within 15 days

MUMBAI, JULY 31: 
Pancard Clubs, is in the business of marketing holiday plans, has been directed by SEBI not to collect any fresh money under its existing schemes (holiday plans).

SEBI has also directed its directors Sudhir Shankar Moravekar, Shobha Ratnakar Barde, Usha Arun Tari, Manish Kalidas Gandhi, Chandrasen Ganpatrao Bhise and Ramakrishnan not to launch any new schemes and submit the full inventory of assets obtained through the money raised by Pancard Clubs. The regulator has also instructed Pancard Clubs not to divert any funds raised to date and furnish details sought by the regulator within 15 days. The company, earlier had raised ₹3,096 crore from the public. In an interim order on Thursday, SEBI found Pancard Clubs and its directors prima facie guilty of running a collective investment scheme.

The company, in its submissions, had said it is in the business of marketing time share products — room nights — of its hotels and other hotels outside its group at a fixed tariff during the contracted tenure of the holiday options.

At the end of the tenure, applicants had the option of surrendering their unutilised room night entitlements and obtain estimated market value for the repurchased room nights or provide them any products of the group or gift it to their family or friends.

The directions come into effect immediately.

(This article was published on July 31, 2014)

“The Federal Tax Administration provides [... ] concerning mutual assistance Sayed Mohammed Masood, born on 24 October 1956 Indian national. The Federal Tax Administration [ ... ] , in which the Wharf Limited, founded on 5 May 2006, [ ... ], Bahamas, appears: [ ... ],” the notification said.