The Prakasam police have achieved a breakthrough in the multi-crore N-Mart fraud case with execution of the non-bailable arrest warrant issued against Gopal Mohan Singh Shekhawat N-Mart Chairman and Managing Director.
Presenting the accused before the media here on Thursday after his arrest in Surat on Tuesday last, Prakasam Superintendent of Police K. Raghuram Reddy said investigation revealed that the firm had collected Rs. 661.51 crore from gullible investors over across the country, including Rs. 14 crore in Prakasam district, allegedly in violation of the Prize Chit and Money Circulation Schemes (Banning Act).
The firm had started 275 retail outlets, including 26 in Andhra Pradesh, and offered attractive incentives, gifts and commissions. The firm had collected deposits in violation of the RBI Act of 1934 and conducted prize and money circulation business under the guise of multi-level marketing, the SP said.
“We are working closely in coordination with our counterparts in Kerala, Madhya Pradesh and other States to unravel the case fully,” he said, adding in all 10 cases were registered against the firm in different cities and towns. Three cars worth Rs. 5.60 crore, including a Rolls Royce worth Rs. 4.20 crore, were seized from the accused and bank deposits of Rs 2.18 crore frozen. The Prakasam police have also seized a helicopter in this connection.
“We have identified assets worth Rs. 50 crore of the accused in Mumbai and Surat and moved the District Collector for attachment of the assets under the Protection of Deposits in Financial Establishment Act,” Dr Reddy said.
“We will press for his custody before the Principal Sessions and District Judge here, to file charge sheet in the case.”
Keeping in view the Supreme Court’s landmark judgment in the Sahara case, we will act against firms mobilising money from the public illegally, he added.