The Central Bureau of Investigation on Wednesday arrested Inspector-General of Police (Armed Police) P. Pramod Kumar in New Delhi in connection with the Paazee Forex Trading Company scam, highly placed sources said. The arrested police officer is likely to be brought to Coimbatore on Thursday to present him before the court for CBI cases.
Mr. Kumar was IGP (West Zone) when the case was registered by the Tirupur District Police. The charge against the IG, according to the CBI, was that he had received a huge bribe to protect its three directors. Meanwhile, a woman had alleged that she was kidnapped and sexually abused by policemen involved in the case. The charge was that an amount of nearly Rs 1.85 crore was taken in three installments holding Kamalavalli in captivity and also for protecting the investors. Mr. Pramod Kumar in his anticipatory bail plea stated that none of the promoters of the firm had accused him of demanding or taking money. He was declined advance bail.
In 2009, investors who parked their funds with Paazee Forex Trading Company preferred a complaint stating that they were defrauded. The firm was promoted by K. Kathiravan, his son K. Mohanraj and Kamalavalli. The case was registered by Tirupur District Crime Branch on September 24, 2009.
Meanwhile, there was a complaint of a woman missing registered by the Tirupur Police in October 2009 when Kamalavalli was reported missing. Subsequently, the case was altered to abduction for ransom after charges of collusion by top police officials. A case was registered under sections 363 (abduction), 341 (wrongful confinement), 384 (abduction for ransom) and 506 (ii) for Criminal Intimidation under Indian Penal Code besides Section 4 of the Tamil Nadu Prevention of Harassment of Women Act.
The abduction and scam case was then transferred to the Economic Offences Wing on February 26, 2010 and then subsequently to the State Crime Branch CID. The investigating agencies had put the scam at Rs 576 crore. Sources said that the police officials were also facing charges under section 7 and 13 (2) read with 13 (1) of Prevention of Corruption Act for illegal gratification. In connection with the charges, all the three police officials – Inspectors K. Mohanraj and Shanmugiah and Deputy Superintendent of Police Rajendran – were placed under suspension. Following complaints of collusion by top police officials, the case was handed over to the CBI on February 18, 2011.
Meanwhile, the promoters of the firm Mr Mohanraj was arrested in Guwahati and Mr. Kathiravan and Kamalavalli from a resort at Chirapunjee in connection with the charges of criminal breach of trust and cheating. Their arrests came after their interim anticipatory bail granted by the Madras High Court was vacated and the Supreme Court turning down their plea.