Paazee Forex scam

I-G Pramod Kumar

In 2009, investors who parked their funds in Paazee Forex Trading Company preferred a complaint stating that they were defrauded. The firm was promoted by K. Kathiravan, his son K. Mohanraj and Kamalavalli. Initially, the case was registered by Tirupur District Crime Branch on September 24, 2009.

Meanwhile, there was also a complaint of woman missing registered by the Tirupur Police in October 2009 when Kamalavalli was reported missing. Subsequently, the case was altered into abduction for ransom after charges of collusion by top police officials. A case was registered under sections 363 (abduction), 341 (wrongful confinement), 384 (abduction for ransom) and 506 (ii) for Criminal Intimidation under Indian Penal Code besides Section 4 of the Tamil Nadu Prevention of Harassment of Women Act.

The abduction and scam case was then transferred to the Economic Offences Wing on February 26, 2010 and then subsequently to the State Crime Branch CID. The investigating agencies had put the total scam at Rs 576 crore.

Sources said that the police officials were also facing charges under section 7 and 13 (2) read with 13 (1) of Prevention of Corruption Act for illegal gratification. In connection with the charges, all the three police officials Inspectors K. Mohanraj, Shanmugiah and Deputy Superintendent of Police Rajendran were placed under suspension.

The Central Bureau of Investigation arrested Inspector-General of Police (Armed Police) P. Pramod Kumar in New Delhi in connection with illegal gratification charges he is facing in the Paazee Forex Trading Company scam, highly placed sources said. The arrested police officer is likely to be brought to Coimbatore on Thursday for being produced before the court for CBI cases.

Mr Kumar was IGP (West Zone) when the case was registered by the Tirupur District Police. The charge against the IG according to CBI was that he had received huge amount as bribe to protect the three directors. Meanwhile, a woman alleged that she was kidnapped and sexually abused by policemen involved in the case.

The charge was that an amount of nearly Rs 1.85 crore was taken in three installments holding Kamalavalli in captivity and also for protecting the investors. Mr. Pramod Kumar in his anticipatory bail plea stated that none of the promoters of the firm had accused him of demanding or taking money or through any one else or on behalf of any one. He was declined advance bail.

 SOURCE : www.thehindu.com