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CBI chargesheets 5 in Century scam case

The Central Bureau of Investigation on Friday filed a chargesheet in a designated court of Lucknow against five persons in the Century scam case for allegedly defrauding the public of millions of rupees.

According to a CBI spokesman, the chargesheet was filed against G N Johari, Arvind Mohan Johari, Anand Krishna Johari, Pradeep Narain and A K Shah under section 120-B (criminal conspiracy) and other sections of Indian Penal Code.

The CBI had registered five cases in April this year following a complaint by Uttar Pradesh government that the company had defrauded thousands of investors of millions of rupees.

The CBI investigation has revealed that Century Consultants Limited lured the individual investors to invest money under byaj dadla scheme of the Bombay Stock Exchange and gave the investors the brochures explicitly mentioning this and giving other details about the scheme.

It is mandatory that investors be given contract notes by Century Consultants Limited but the CBI investigations has revealed that none of the 1138 investors of the scheme were given contract note by the company nor were the Rs 157 million collected from them invested in the Bombay Stock Exchange, the spokesman said.

The CBI said the amount was in fact dishonestly and fraudulently utilised by the Century Consultants.

In a similar manner, the Century Consultants Limited flouted "Century Consultants Limited secured bond" on private placement. The offer document mentioned these bonds to be secured and promised that the security will be created against the assests to be created out of the proceeds of the bonds.

Under the law, the company had not only to secure the assets with a trust but also file the charge regarding the security with the Registrar of Companies, the spokesman said.

The CBI investigations revealed that the company did neither, and also never issued the bonds certificate to the 2202 investors.

The CBI said the firm has made a statement, which was deceptive and misleading.

The investigations disclosed that the amount so collected had not been utilised to get the bond secured rather it was utilised for their own use by the directors of the company.

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