In a rarest of convictions, the CBI court, Coimbatore (Tamilnadu) has today sentenced K. Mohanraj & Kamalavalli (both private persons) to undergo twenty seven years Rigorous Imprisonment (consecutively for all Sections) with fine of Rs. 42.76 crore each and imposed a fine of Rs. 28.74 Crore each on three private firms – M/s. Paazee Forex Trading India Pvt Ltd, M/s. Paazee Trading Inc.& M/s. Paazee Marketing Co. in a case related to cheating the public depositors to the tune of Rs. 870.10 crore (approx.).
The trial court imposed a total fine imposed amounts to Rs. 171.74 crore.
CBI had registered a case on 15.06.2011 on the orders of the High Court of Madras against the accused.
It was alleged that M/s. Paazee Marketing Co., Tiruppur run by K. Mohanraj, Director & others including other private companies floated various schemes between July 2008 & September 2009 and cheated various depositors to the tune of Rs. 870.10 crore (approx.) by collecting deposits from them on the false promise of high returns.
After investigation, a chargesheeted was filed against the accused on 7.10.2011.
It was further alleged that the accused including Directors of the companies through the website www.paazeemarketing.com fraudulently mobilized deposits & investments dishonestly promising that the same made by the public would be used in Forex Trading business. The accused further promised that 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 M/s. Paazee Forex Trading India Pvt. Ltd., M/s. Paazee Trading Inc. and M/s. Paazee Marketing Co.
After thorough investigation, a charge-sheet was filed on 07.10.2011 against the accused. The Trial Court found two accused & three companies guilty and convicted them.
