Published On : Wed, Aug 7th, 2013

Another scam hits Nagpur; Shreesurya Group dupes investors of their hard earned money

Nagpur News: Yet another investment scam is in the making in Nagpur, where in, investors are likely to lose their hard earned money. The loopholes in the policies laid down by Reserve Bank of India (RBI) and Securities and Exchange Board of India (SEBI) is to blame for the goof up leading to suffering of investors. Nagpur based diversified and known Shreesurya Group of Companies is caught under dubious state of affairs as the Maharashtra’s Money Investment Act shows its investment arm as illegal.

Sources confirmed the news saying that Shreesurya Investments, a Shreesurya Group of Enterprises, is severely trapped under investment clogging where the people’s money floated in other avenues were blocked drastically. The company’s Chairman and Managing Director, Sameer Joshi is reportedly struggling to get out of the mess. He has been taken to a psychologist clinic as his mental health reportedly worsened owing to the financial pressures.

SEBI, RBI ignored violation

Highly placed sources informed that the Shreesurya Investments of Shreesurya Group of Enterprises is neither registered with Reserve Bank of India nor Securities and Exchange Board of India (SEBI). The Maharashtra’s Money Investment Act shows the company as illegal. Under such state of affairs, the company could not float any scheme and get the people to invest in their schemes.

Social activist Sandeep Agrawal revealed the goofup saying, “The illegal activities of the Shreesurya Investments of Shreesurya Group of Enterprises were brought to the notice of RBI and SEBI on January 5, 2013. Had the RBI and SEBI acted on time, hundreds of investors would not have lost their hard-earned money.”

Investors rush at company’s office

The scene at the office of Shreesurya Investments resembles bee hive these days as hundreds of investors have stormed the place to withdraw their money. The reason for forcing the anxious investors to withdraw their money is the confession by the representatives of Shreesurya Investments that they illegally got the money from investors and pumped into some other avenues. The company is currently facing severe liquidity crunch. The company has expressed its inability to return TDS and IT amounts of refunds.

Lured investments into ‘big return’ promise

According to reports, the Shreesurya Group had promised 40 per cent interest on the investments. The lure of 40 percent attracted large number of investors to the company only to be deceived. Now, the situation has come to such a pass that leave alone 40 percent interest, even the sum invested could be returned to the investors.

According to the comprehensive reports, the Shreesurya Group was giving membership for investors. After the membership, the Group was advising the investors to pour in their investments as Fixed Deposits by dangling the “40 per cent” interest (doubling the amount in two and a half years). The Group paid 4 per cent interest to investors till February 2013.

Illegal flow of public money

Shreesurya Group clandestinely invested the investors’ money into logistics, tour and travel, tourism, daily need items, financial services, health services, cooking oil, Information and Technology, infrastructure, cold drinks, bakery products, supermarts, restaurants, clothing, media, spa-salon, fitness gyms etc. According to the company, the Group was started with a local office managed by just three persons. But slowly and steadily, the Group thrived and prospered and the company turned into 100 members strong.

Half refund through postdated cheques!

Irked investors complain that the company has drastically lowered its interest rate and even refunding only half of the invested money that too through post dated cheques. But the investors are expressing their doubts over whether even the half amount would be paid by the company. The investors urged fellow sufferers to unite and lodge a common complaint with police against the Shreesurya Investments. The Group could be booked under Section 138 of IPC if the cheques get bounced. Similarly, issuing of cheques without sufficient amount in the account could mean cheating and the investors could file a criminal complaint against the Group with SBI, RBI, banks and with Maharashtra Government.

Staff at the receiving end

The Shreesurya Investments staffers are taking the severe beating from the investors in the form of abusement. Some influential people including those from political outfits are forcibly “recovering their dues” from the company by hook and crook. The Nagpur police, however, have turned a blind eye towards the fracas and have been seen as silent spectators.

25,000 investors across state

The reports say, it is nothing short of a well-planned scam. Around 25,000 investors in Maharashtra had invested their money in the company collectively amounting to Rs 1000 crore. The money stands at the point of no return. There are now visible signs that the Shreesurya Group has been embroiled into a whirlpool of a fresh scam. Kishore Tiwari of Vidrabh Jan Andolan informed that the Chief Minister Prithviraj Chavan has ordered an investigation against the Shreesurya Group under the Maharashtra Protection of Investors Deposit (Financial Scheme ) Act, 1999. The investigation under the MPID Act would provide a relief to the investors