Special Operation Group (SOG) today arrested four office bearers of Adarsh Co-operative Society for duping investors of Rs 8000 Cr. SOG carried out the arrest from Sirohi today. A total of 11 officials have so far been arrested in this case.
DG (SOG) Bhupendra Singh Yadav informed that of the arrested people Virendra Modi and Kamlesh Chaudhary have been ex-Chairman of Adarsh Co-operative Bank. Other people arrested so far include Chairman Ishwar Singh Sinhal, Ex-MD Priyanka Modi, Sr VP Vaibhav Lodha, CFO Sameer Modi, Assistant MD Rohit Modi, ex-MD Lalit Rajpurohit, Director Vivek Rajpurohit, Director of Aditya Mega Project, Bharat Modi and Bharat Das Vaishnav of Techtonic Infrastructure Limited.
SOG Jaipur had receive information in Aug 2008 that Mukesh Modi had established Adarsh Co-operative Society in Ahmedabad and it had 806 branches in 28 states and 4 UT in India. Out of this there were 309 branches in Rajasthan wherein they had made 20 lakh members. This included 10 lakh members who had invested money. Adarsh Co-operative Society used Rs 8000 Crore from this investment and invested the money illegally in their shell companies.
Mukesh Modi and Virendra Modi also paid Rs 270 Cr as ex gratia payment to their son-daughter and son-in-law over past few years. They also paid Rs 720 Cr to their relatives for holding advisory position, without relatives actually contributing anything.
Large loans were also doled out without any collateral security to their shell companies. Now when investors are coming to draw their money, the society is not paying them back.
Cases under various sections of fraud under IPC have registered against Adarsh Co-operative Society.