Chit fund scam: Investor’s money deposited at jewellery store on pretext of online trading, ED acts

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New Delhi: The Enforcement Directorate unearthed a chit fund scam case in which people were being duped of money they invested for online trading through some private individuals. As it turned out, the accused running the scheme were investing the money as recurring deposits in a jewellery shop.

The ED seized 11 immovable properties worth Rs 1.01 crore in Ranchi, Latehar and Garhwa districts of Jharkhand belonging to DJN Jewellers represented by various individuals.

“Enforcement Directorate has taken possession of 11 immovable properties worth Rs. 1.01 Crore belonging to M/s DJN Jewellers Pvt. Ltd., represented through Jeetendra Mohan Sinha (CMD of DJN Group), Vipin Kumar Sinha, Ram Kishun Thakur and Vishal Kumar Sinha in a case of Chit Fund Scam. The properties are in the form of Flat, Shop and plots situated at Ranchi, Latehar and Garhwa district,” the agency said in a statement.

ED had earlier attached assets worth Rs 1.66 crore on December 31, 2019.

The agency initiated money laundering investigation on the basis of FIR and chargesheet filed by Ranchi Police against Jeetendra Mohan Sinha and others.

The investigation revealed that Sinha conspired with other proprietors and directors to cheat the investors and developed software in the name DJN Commodities for conducting offline trading.

“DJN Commodities was collecting public deposits offline in the name of conducting online trading with the promise to offer return at high rate of interest per month,” the ED noted.

It further said that the accused persons created an “ingenious scheme of recurring deposits in a jewellery shop to dupe the innocent investors and to rob their hard-earned money”.