12 September, AtoZForex.com, Lagos – The unfortunate situation of the alleged fraud in the Indian cooperation, Crown credit continues to expand. It has been reported that the scheme is much bigger than estimated at the beginning. According to the Times of India, the fraud exceeds over Rs 100 crore, which is comparable to about USD $15 million.
The case has already led to the arrest and custody of Jagjit Singh, owner of Crown credit and co-owner on TradeNext, along with seven individuals other suspected, who are involved in the fraud. From recent news, it was made clear that two more arrests in TradeNext case have been made.
The two individuals, Lalit Kumar and Partap (Vijay) Singh have aided Crown credit with its operations of using Hawala brokers. In order to move millions of dollars from Crown Credit via Dubai to TradeNext in the UK. Till now, the exact reasoning behind these transferred funds remains unclear.
The Indian police seems to be getting closer to uncover the actual occurrences in the Crown credit saga. Starting with how funds were lost or misappropriated, but also how the scheme is connected with TradeNext. Investors in the fund were of the opinion that they were investing their money in high yielding ‘Chit Funds’ at Crown Credit.
As earlier reported by AtoZ Forex: the Indian authorities have now involved UK authorities as the investigation continues. The police has now clarified that they will seek for information that proves any relationship between Crown Company with the FCA regulated TradeNext Limited, which is based in London (UK). Under the Money Laundering Act, the UK Embassy in Delhi has been involved to procure records that pertain investments of Crown Company in TradeNext.
Transactions through Hawala brokers
"The chit fund company operators had created an ID with TradeNext to transfer money to UK through Dubai. The operators made contacts with Lalit who further engaged Partap to carry out the illegal transactions involving larger amounts of money. We are trying to find out the total money which has been sent to UK through hawala, and for that we have decided to approach the ED," said Barnala senior superintendent of police Opinderjit Singh Ghumman.
In the Crown Credit fraud case, the firm is known to have promised high yield returns to investors. Yet, these earnings never got received. Eventually this led to about 20 complaints filed in Barnala and Bathinda, on allegations of fraud against the firm.
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