share trading

According to the police, Kathiraan, senior reporter in a leading Tamil daily, and his 27-year-old son, Mohan Raj, besides a Chennai-based woman, Kamalavalli, floated
the Paazee Forex Trading Co. besides a few other firms, over a year ago and solicited public deposits, promising staggeringly high dividends. For instance, for a Rs 50,000 deposit, they offered a tempting amount of Rs 140,944 as returns in eight months.
At the time of making the deposits, the company would give post-dated cheques towards what they called 'divident amount' as well as for the deposit amount. For a deposit of Rs one lakh, the offer was Rs 2.80 lakh inclusive of dividends. And for a Rs five lakh deposit, the promise was Rs 14.91 lakh in 13 months. The company is suspected to have used the deposit amounts to make hawala transactions.
Lured by the festival season offers, at least 5,000 depositors swarmed the company's premises near the Pushpa Theatre in Tirupur with their hard-earned money.
"We estimate at least Rs 50 crore may have been deposited by about 5,000 people," the Tirupur SP, Dr N Kannan, told TOI. The crime branch police, which got wind of the fraud, launched a probe into the financial transactions of the company. As the police stepped up investigation, the company's directors, including the journalist, went absconding on Thursday evening. "We have registered a case of fraud against the three directors of the company," the SP said.
Cases have been registered under Section 420 (cheating) of the IPC, and provisions of the Prize, Chits and Money Circulation Schemes (Banning) Act, 1978, as the company had allegedly violated the Reserve Bank of India rules in securing public deposits and investing in hawala funds, police said.