Goa cops arrest 'vanishing company' director

Sandesh Prabhudesai in Panaji

Arun Chawla, who floated a non-banking finance company and allegedly duped hundreds of investors, was arrested by the police in Goa on Friday.

His company -- Rockland Leasing Finance Company, set up in 1995 -- is said to duped investors to the tune of Rs 110 million. In Goa too, he shut shop to vanish with about Rs 15 million of the investors' money.

The 'economic offences wing' of the Goa police, set up recently to probe into offences committed by NBFCs, laid a trap following a tip off and nabbed him at the hotel he was staying in.

"It is a major breakthrough for us," says Karnal Singh, the state DIG. The cops had registered an offence against Chawla for cheating and misappropriation of money.

Besides Chawla, the other directors of the company -- Jagmohan Chawla, Indu Chawla, Tarun Chawla, Virendra and V K Jain -- are still absconding. The cops, however, are confident of arresting them shortly.

The Goa police will also launch fresh efforts to locate the movable and immovable assets of such NBFCs or 'vanishing companies'. The case of the Western India Financial Company Limited, one such company then headed by Union minister Suresh Prabhu, had also drawn flak. However, no arrests have been made in that case.

Money

Business News

Tell us what you think of this report