Businessman, wife arrested for duping investors (Second Lead)

June 13th, 2009 - 6:12 pm ICT by IANS  

New Delhi, June 13 (IANS) Businessman Subhash Aggarwal and wife Snehlata, who were on the run after being accused of cheating thousands of people of Rs.10 billion with their “get-rich-quick” scheme, were arrested Saturday.
Aggarwal, the managing director of Stop Loss Commodity Ltd, and his wife were arrested by the Economic Offences Wing (EOW) of Delhi Police from Nangloi in northwest Delhi, a police officer said.

“We arrested Subhash Aggarwal and his wife Snehlata this morning from Nangloi,” a police official said.

Aggarwal allegedly duped around 5,000 residents of Nangloi of about Rs.1,000 crore (Rs.10 billion). He used to lure people with “get-rich-quick” scheme.

A court later allowed police to quiz the couple for cheating thousands of innocent investors.

The Rohini district court sent Aggarwal to five days’ police custody while his wife would be quizzed for two days.

Aggarwal took money from people promising them that it would be doubled and returned to them within a short period. Aggarwal fled after issuing cheques in the name of his company Stop Loss Commodity. The cheques bounced.

“Aggarwal allegedly lured people to invest Rs.10,000, for which he promised Rs.1,000 as interest every month. To some he even offered to double their investments in two to six months,” the court was told.

“He used to give post-dated cheques to all to gain their confidence. However, on May 19 some investors went to the bank to collect money and the cheques bounced. That is when the matter surfaced,” the police added.

After the fraud came to light, people ransacked Aggarwal’s home and office here last week.

Aggarwal, who hails from Haryana’s Rohtak town, came to the capital four years ago and started a firm in Uttam Nagar selling similar schemes but after complaints he packed his bags. Later, he started the same scheme in Nangloi with Naresh Lapada, who was the director with the firm.

Aggarwal along with a property dealer Satpal invested crores of rupees in property and built an empire of his own, officials said.

The police is also looking out for Satpal and Naresh, who are absconding.

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