Published On : Sun, Sep 7th, 2014

SEBI, EOW contradict status of funds in bank accounts of Wasankar & Group in a big way


The SEBI report says that there were credits of Rs 111 crore from April 2013 to May 2014 but the  Economic Offences Wing did not find any such money in the accounts of Wasankar and his associates. Both SEBI and EOW are independently investigating the multi-crore investment scam perpetrated by the fraudsters.

wasankar1Nagpur News.

In an upsetting turn of development, the two high-profile agencies – SEBI and EOW — investigating the multi-crore investment scam perpetrated by Prashant Wasankar and his associates have contradicted the status of cash lying in bank accounts of the fraudsters. The SEBI report says that there were credits of Rs 111 crore from April 2013 to May 2014, but the  Economic Offences Wing of Nagpur Police did not find any such money in the accounts of Wasankar and his associates. Moreover, the SEBI probe report has mentioned that Wasankar’ own account had Rs 40 crore in credits. EOW said there was not more than Rs 12 lakh in all the accounts held by Wasankar and his companies, according to sources.

Sources further said that the contradiction assumes significance in the backdrop of SEBI’s order of August 27 directing Wasankar to pay back all his investors, along with the promised high interest, by September 3. However, there were no visible signs that showed Wasankar and his group returned the investments as the deadline came to an end. Excuses put forward by lawyers representing the scamsters said that they need more time as the funds cannot be accessed till the accused are released on bail, said the sources.

It may be recalled, Prashant Wasankar of Wasankar Wealth Management Ltd and his associates allegedly promised astronomical returns in fanciful but fraudulent investments. Hundreds of investors have reportedly been lured and duped.  However, Wasankar and his group defaulted on many payments and thus left the investors high and dry. It is surfaced that the Wasankar Wealth Management Company has eroded the hard earn money of over 2000 people by offering them quantum hike in their sum within short span of time.  Wasankar allegedly charged huge amount membership as much as Rs. 1 lakh per annum and collected over Rs 2000 crore. He assured the depositors by giving them post dated cheques offering around 30% interest on deposit.

Incidentally, the EOW had registered an offence against Wasankar on May 9, 2014 after a flood of complaints started deluging various police stations.  Wasankar was eventually arrested on July 27. Both SEBI and EOW are independently investigating the case. EOW sources said the Rs 111 crore deposited in the bank accounts may have been the funds received from investors, the source said.

Now, all sights, specifically of duped investors, would be focused on the next move of SEBI (Securities and Exchange Board of India) as Wasankar has failed to meet the September 3 deadline to return money of investors.