Refund cell will return R489 crore to victims in the first phase through a single window system
Illustration/Uday Mohite
Victims of fraudulent schemes can finally breathe easy. The newly established Refund Cell of Mumbai police’s Economic Offences Wing (EOW) is set to return a massive Rs 489 crore to these investors. This is the first phase in staggered return payments. On Monday, mid-day had reported that EOW plans to return Rs 3,000 crore to victims in a phased manner.
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The new cell was formed after victims of financial and white-collar crimes and investors, duped in many Ponzi and investment schemes, had approached the EOW for justice.
Phased distribution
A senior EOW officer told mid-day that after police commissioner Datta Padsalgikar approved the proposal, EOW established a refund cell in the Byculla traffic police training centre building.
"The new cell will start with distribution of R489 crore. This amount was recovered from sale of properties of 11 companies involved in financial-investment frauds from 1998-2005. Recently, a city court ordered the EOW to refund this money to victim investors," said a senior officer. Names of these companies will soon be disclosed by the EOW.
In a year’s time, the new cell also plans to begin the process of refunding money to investors in the Sai Prasad scam, in which nearly 20 lakh investors from across the country were duped of nearly Rs 4,000 crore.
The victims of fraud will be reimbursed in a phased manner
One-window system
Earlier, investors had to run to multiple departments and courts to enquire about their money. A dedicated cell does away with that. The basic concept is to provide a one-window system to victims.
As per the legal procedure, the investigating officer (IO) of a case identifies movable and immovable assets that the accused of the financial fraud had made from the money he earned. The IO collects strong evidence and then approaches the court, requesting attachment of the said properties. The court then appoints an authority (mostly deputy collectors) to auction/sell the property and the investigation agency is ordered by the concerned court to distribute the money, collected from auction, to victim investors, an officer from the EOW said.
"This cell will ensure timely and systematic refund of money to investors in a well coordinated and transparent manner," Ashutosh Dumbre, joint commissioner of police, EOW, had said.
The new cell will be headed by an ACP-rank officer, who will be assisted by a senior inspector, two sub-inspectors and eight constables. A four-wheeler and a two-wheeler will be provided to this cell.
The EOW is currently investigating thousands of financial frauds and Ponzi schemes. "While investigating many cases, we came across victims from poor or weak financial backgrounds, who invested money by mortgaging their valuables and properties. The investment frauds have shattered many lives. Returning these funds will build the victims’ trust in the system," an EOW officer said.
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