Odisha

Chit Fund Scam: 3-Year Jail Term For Former Safex Group Director

By
OB Bureau

Bhubaneswar: The Special CJM (CBI Cases), Bhubaneswar, has sentenced Firoz Khan, the then director of M/s Safex Group of Companies, to three years of rigorous imprisonment in a case related to chit fund scam.

The court also convicted M/s Safex Infra India Limited represented by Khan and directed the company to pay Rs.12 crore compensation to the depositors as per law.

The central investigating agency had registered a case on June 5, 2014, in compliance with the May 9, 2014, order of Supreme Court against M/s. Safex Group of Companies and taken over the investigation. A case against the company was registered earlier at CB, CID, EOW on  September 12, 2012 .

It was alleged that accused persons collected Rs.9,36,24,500 illegally from investors under different schemes from December 2010 to August 2012 but only returned an amount of Rs.45,23,346, thereby, misappropriating the rest amount in conspiracy with each other.

On September 30, 2015, a chargesheet was filed in the Special CJM court under Sections 120B, 420 & 409 of IPC &. Sections 4, 5 and 6 of Prize Chits and Money Circulation Schemes (Banning) Act, 1978, against Khan along with 8 others and 1 entity namely M/s. Safex Infra India Ltd. Khan was initillay named in chargesheeted as an absconder and subsequently arrested on March 20, 2016. He is currently in judicial custody.

OB Bureau

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