Arbuda Credit Co-operative Society Ltd allegedly duped 3,000 members about Rs 100 crore on the basis of initial reports. Incident also known as Mount Abu Ponzi scam.
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Background
Credit Co Video
Modus operandi of Social trade
Founded in 2012, the society spread its wings faster in cash-rich Gujarat than in Rajasthan. Gujaratis, who frequently flocked to Mt Abu, were the prime targets of the society.
It paid huge rewards to agents gold, silver coins along with laptops for meeting targets and attracted a large workforce who operated in every city in Gujarat.
Key people
Rakesh Agarwal and Asha Agarwal.
Financial operations
By 2016, the society, with licences to operate in multiple states, had set up 47 branches in Gujarat.
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The demonetization drive helped to unearth the scam as the society became exposed when people started demanding their money back.
Aftermath and reactions
Criminal prosecution and ongoing investigations
On Feb 26 2017, Rajasthan police seized hard disks, laptops and documents from the head office of the society at Mt Abu even as the Gujarat police formed a special team, headed by ADGP Anil Pratham, to carry out investigation into complaints from that state.
Twelve FIRs have been filed in Gujarat and four in Rajasthan against the cooperative.
The prime suspects in the scam Rakesh Agarwal and his wife Asha Agarwal are untraceable since January 20 2017, a day after they made an appeal in newspapers of returning the maturity amount to all stakeholders.
Police have sought the help of cyber crime expert and tracked the servers of the society at Sirohi and Udaipur. These servers have account details and balance sheets of all branches.
On March 9 2017, Rakesh Agarwal, accused of multi-crore scam surrendered before Mount Abu police and he is currently in police interrogation.
Source of the article : Wikipedia
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