Investigating for more than a couple of years, the Enforcement Directorate has finally filed a Prosecution Complaint against 124 persons which includes companies as well in the case of Adarsh Credit Cooperative Society case.
The matter relates to Adarsh Credit siphoning off a huge fund of gullible investors on the false promise of doubling their income. Twenty lakh people invested Rs 14,682 crore over 8 years in Adarsh credit society.
The founder chairman of Adarsh Credit Co-op Mukesh and his family members are alleged to have run Ponzi schemes and floated several fake companies to which they diverted Rs 8400 crore.
In a social campaign launched by the investors they had requested the Prime Minister to remove liquidator and appoint an administrator to regulate Adarsh Credit Cooperative society Ltd so lives of 21 lakh members, 4 lakh advisers and 4000 employees can be saved.
Beginning in Sirohi in Rajasthan, Adarsh Credit branched off to Haryana and Gujarat with its headquarters in Ahmedabad. More than seventy percent of investors are said to belong to Rajasthan.
The ED has on Wednesday filed a report about individuals, companies and firms, directors or partners or persons responsible for Adarsh Group of Companies or firms or LLPs, the Riddhi Siddhi Group of Companies or firms or AOPs, the Virendra Modi Group of Companies or individuals and others. Mukesh, Rahul and others figure prominently in the list.
Earlier, the ED has attached movable and immovable properties worth Rs 1,489 crore of Adarsh Credit, which in a way prevented the Liquidator to make any progress. In an interview given to the Indian Cooperative earlier, H S Patel frankly had admitted his inability to do anything due to the attachment of Adarsh properties by the ED.
Wednesday’s ED reports say “Money laundering probe revealed that ACCSL lured common people by offering high interest rates on their deposits. The funds so collected were siphoned off to Mukesh Modi’s companies or firms and his relatives and associates in the garb of loans illicitly availed and integrated with their real estate businesses”.
Last year, hearing the petition filed by several investors of the beleaguered Adarsh Credit Cooperative Society, the High Court of Chhattisgarh at Bilaspur had ordered the union government and the liquidator to repay the money of petitioners within 60 days, but to no avail as the govt had been seeking dates after dates from the court.
The investors of the beleaguered cooperative Adarsh Credit Cooperative Society have already petitioned everyone from the Prime Minister to the Union Agriculture Minister to the Union Finance Minister and other concerned authorities but the efforts of investors are yet to bear fruit.