Pune Economic Offences Wing Nabs Agri-Finance Company Director in Multi-Crore Investment Scam
The Economic Offences Wing (EOW) of Pune made a significant arrest on Thursday night, apprehending the director of an agriculture-based finance company for allegedly defrauding over 30 investors of at least Rs 15 crore in recent months. The case, which involves serious financial deception, has been registered under relevant sections of the Bharatiya Nyaya Sanhita (BNS) for cheating and criminal breach of trust.
Details of the Arrest and Charges
Deputy Commissioner of Police (EOW) Vivek Masal confirmed the arrest of Prashant Gawali (35), a resident of Hadapsar and director of the implicated finance company. Gawali operated from an office located on Magarpatta Road in Hadapsar. The Hadapsar police had initially registered the case, but it was later taken over by the EOW, who invoked additional charges under the Maharashtra Protection of Interest of Depositors' (MPID) Act to address the severity of the financial misconduct.
Masal stated, "We suspect that the amount of the fraud will increase as the number of victims approaching us with their complaints is rising." The victims primarily hail from Pune, Ahilyanagar, and Beed districts, indicating a widespread impact across the region.
Background of the Fraudulent Scheme
This arrest is not Gawali's first brush with the law. About six months ago, the Hadapsar police had registered a case of impersonation against him for posing as an "honorary agricultural commissioner." Leveraging this false identity, Gawali floated a finance scheme targeting farmers and other investors. He promised them 10% monthly returns or "double returns" (twice the invested amounts) within 20 months, luring victims with the allure of high profits.
Masal explained, "The farmers and the investors fell for the scheme believing him to be a government official." To further convince his targets, Gawali claimed to have earned substantial money by exporting agricultural products and promised to purchase their yields for export, arguing that export markets yield much higher returns compared to domestic sales.
Execution of the Scam and Aftermath
Initially, Gawali paid returns to investors after collecting their money, building trust and credibility. However, he later defaulted on payments, failing to provide the promised monthly returns and maturity amounts. This pattern of deception has left numerous investors in financial distress, with the total fraud amount expected to rise as more victims come forward.
The EOW's swift action highlights ongoing efforts to combat financial crimes in Maharashtra, particularly those exploiting agricultural sectors. The case underscores the importance of vigilance among investors and the need for stringent regulatory oversight to prevent such scams.
