The Economic Offences Wing of the Crime Branch-CID (CB-CID), has registered a criminal case against Arjunlal Sunderdas, a businessman dealing with finance and real estate, following a complaint from the Official Assignee of the Madras High Court alleging that he had collected nearly ₹160 crore from 291 persons and diverted to third parties.
In 2014, B.S. Suman Aggarwal lodged a complaint with the city police that Sunderdas had borrowed a huge sum of money, promising to repay the amount in 35 months with high interest rates by investing in a ‘double your money scheme.’ Believing him, Mr. Aggarwal and his family parted with ₹4.75 crore. However, instead of paying the interest, Sunderdas and his family offered Mr. Aggarwal a flat in an apartment to be developed on College Road and made him pay more. After a few months, Mr. Aggarwal learnt that the land had been sold to another developer.
Sunderdas allegedly cheated several persons in a similar manner and diverted the money to third parties. Even former Law Minister Ram Jethmalani reportedly lodged a complaint against him with the city police and withdrew it later. Following similar complaints, Sunderdas was arrested by the Central Crime Branch in 2014. He was declared insolvent by the Madras High Court on April 21, 2014. The court then appointed the Official Assignee for realisation and distribution of properties of the insolvent among creditors.
Recently, a committee of inspection consisting of creditors reported to the court that Sunderdas had diverted large scale funds of the companies without intimating the Official Assignee and that he and his auditor did not cooperate with the proceedings.
Justice C.V. Karthikeyan of the Madras High Court, in his order said, “A glance at the list reveals that the insolvent has indulged in large transactions. It is not known whether the statutory authorities and the Income Tax Department have been informed about these transactions. It is also not known whether the transactions were made through black money or diverted funds or hawala funds. To unravel the truth, the case must be referred to the CB-CID for investigation and report.”
Now, following a complaint lodged by C.B. Meena, the Official Assignee, the CB-CID registered a case against Sunderdas for offences under Sections 409 (criminal breach of trust by public servant, or by banker, merchant or agent) and Section 420 (cheating and dishonestly inducing delivery of property) of the Indian Penal Code.
