Rs 171 crore cheating case: 27 years rigorous imprisonment and fine of Rs 42.76 crore to 2 Directors of private firms; Rs. 28.74 crore fine

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Chennai: The TNPID Court, Coimbatore (Tamil Nadu) on Friday 26 August 2022 sentenced K. Mohanraj and Ms. Kamalavalli (both Directors of private firms) to undergo twenty seven years Rigorous Imprisonment (consecutively for all Sections) with fine of Rs. 42.76 crore each and imposed a fine of Rs. 28.74 Crore each on three private firms – Paazee Forex Trading India Pvt Ltd, Paazee Trading Inc. and  Paazee Marketing Co. in one of the rarest convictions in a case related to cheating the public depositors to the tune of over Rs. 870.10 crore. The total fine imposed amounts to Rs.171.74 crore.

CBI had registered a case on 15 June 2011 on the orders of the High Court of Madras against the accused. It was alleged that Paazee Marketing Co., Tiruppur run by K. Mohanraj, Director, and others including other private companies floated various schemes between July 2008 and September 2009 and cheated many depositors to the tune of about Rs. 870 crore by collecting deposits from them on the false promise of high returns.

It was further alleged that the accused including Directors of the companies through the website http://www.paazeemarketing.com fraudulently mobilized deposits & investments dishonestly promising that the same made by the public would be used in Forex Trading business. The accused further promised that huge dividend and interest would be paid in very short duration on the deposits so collected. The accused issued post-dated cheques drawn on various Banks where the accused opened accounts in the names of Paazee Forex Trading India Pvt. Ltd., Paazee Trading Inc. and Paazee Marketing Co.

After thorough investigation, a charge-sheet was filed on 7 October 2011 against the accused. The Trial Court found two accused and three companies guilty and convicted them.

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