Money from multi-crore scam went into building villas, flats

Posted on Dec 2 2013 - 2:47pm by IBC News
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New Delhi: Ram Sumiran Pal, the 37-year-old accused arrested in the multi-crore Speak Asia scam, and the other two alleged masterminds had spent over ` 150 crore during Speak Asia’s promotional function in Goa in early 2011, Delhi police said on Tuesday.
The lavish party was organised to convince existing investors and attract more people to invest in the fake scheme. The organisers had hired a special train between Mumbai and Goa for the investors and an exclusive portion of a beach of a resort had been booked. “Several prominent Bollywood celebrities, including actresses and singers, were hired for entertaining the company’s investors and agents. The promotional function was attended by thousands of investors after an open invitation on the company’s website,” said Ravindra Yadav, additional CP (crime).
The multi-level marketing (MLM) company had planned another lavish party for investors in Delhi in June 2011. They had booked Talkatora Stadium for the party.
However, the function was called off by the organisers after scores of investors gathered outside the stadium and created a ruckus demanding refunds. Delhi Police officers claimed that some of the investors were beaten up by the organisers following which a police team reached the venue and the function was called off. Moreover, the company had organised similar parties in foreign countries.
According to a Delhi police officer, Sumiran and others alleged masterminds of the scam had tried their luck in producing a Bollywood film, but they were forced to escape before they could get the returns.
“They allegedly invested ` 2.5 crore on a small-budget comedy film ‘Jiyo Raja Phantom’ starring a Bollywood actor known for his comic roles. The comedian had to face an enquiry by the Mumbai police due to his link with the movie,” added the officer.
After fleeing from Mumbai, Sumiran settled with his in-laws in Dehradun district. His interrogation revealed that he had invested the money in real estate with construction of villas and luxury duplex flats in Dehradun with his old associate Rajesh, a property dealer from Bihar.

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