Reserve Bank of India (RBI) officials from Chennai and Mumbai appeared before the Special Court for cases under the Tamil Nadu Protection of Interests of Depositors (TANPID) Act in connection with the Rs. 870-crore Paazee Forex firm scam case.
On charges of failure to refund the deposits on maturity, a case had been registered against the promoters of the Tirupur-based firm. The case was first transferred from the Crime Branch to the Economic Offences Wing and then to the Central Bureau of Investigation.
The CBI had arrested Kamalavalli, Mohanraj and Kadiravan, the promoters, and filed a 14,000-page charge-sheet against the accused, besides listing 1,432 witnesses.
On Friday, Deputy General Manager of RBI-Chennai Shanthini Moonchand deposed before the court.
According to sources, the official told the court that firms should first register with the RBI and after two-years of functioning they could seek permission from RBI for accepting investments from public. The official had confirmed that the RBI was not granting any registration or permission for NBFCs since 2002.
Another official from RBI – Mumbai told the court about online trading. Both the officials informed the court that Paazee had never registered its name with the RBI for operating as an NBFC and no permission or licence was given to the firm for online trading.The officials had also promised to draw the attention of the Enforcement Directorate, sources added.
