Ponzi Scheme Scam: CBI Registers Case Against KD Singh

Ponzi Scheme Scam: CBI registers a case against former TMC MP of Rajya Sabha for duping investors through the Ponzi scheme.

The Central Bureau of Investigation (CBI) on Tuesday registered a case against a former Rajya Sabha MP, his son, and seven others for cheating and misappropriating investments of around Rs 100 crore.

The accused have been identified as Kanwar Deep Singh alias KD Singh, former MP, his son Karandeep Singh and seven others who were promoters or directors in chit fund companies.

KD Singh is a former Rajya Sabha MP of Trinamool Congress (TMC).

He along with others allegedly defrauded investors by promising villas/plots/apartments through his companies – Alchemist Infra Realty Ltd and Alchemist Township Ltd.

Searches were conducted at 12 different places including Chandigarh, Delhi, Haryana, Bihar, Punjab, and Uttar Pradesh in which incriminating documents were recovered.

The CBI has taken over the investigation of the first registered case at Police Station Kotwali, Azamgarh (UP) on the allegation of fraud and misappropriation of about Rs 100 crores invested by a large number of private persons in two private companies (chit fund companies).

Ponzi scheme scam.

A Ponzi scheme is a fraudulent investment operation where the operator, an individual, or an organization pays returns to its investors from fresh capital paid by new investors to the operators, instead of profit earned through legitimate sources.

Usually, exceptional returns are promised on the original investment. The fraudster disappears with the money of the investors.

So the system eventually collapses and the investors later get nothing. Including their initial investment.

In a Ponzi scheme scam, Ponzi fraudsters use vague technical jargon to describe their non-existent investments.

National Herald Case: ED asked 50 questions to Congress President, Sonia Gandhi said on some – I do not know; called again on Wednesday.

On Tuesday, the second day of questioning in the National Herald case, Congress President Sonia Gandhi replied ‘don’t know’ to some ED questions.

According to a senior ED official, Sonia Gandhi has tried to avoid these important questions related to the scam.

Sonia was questioned by the investigating agency for about six hours, during which she was asked 50 questions. Her interrogation will continue on Wednesday as well.