In a rare conviction, a trial court in Tamil Nadu’s Coimbatore on Friday sentenced two directors of Paazee forex firms — K Mohanraj and Kamalavalli — to rigorous imprisonment for 27 years with a collective fine of Rs 171.74 crore for cheating public depositors to the tune of Rs 870.10 crore.
The court has imposed a fine of Rs. 42.76 crore each on the directors and a fine of Rs 28.74 crore each on three private firms — M/s. Paazee Forex Trading India Pvt Ltd, M/s. Paazee Trading Inc. and M/s. Paazee Marketing Co.
The Central Bureau of Investigation (CBI) had registered a case on June 15, 2011 on the orders of the Madras High Court against the accused.
It was alleged that M/s. Paazee Marketing Co., Tiruppur, run by K Mohanraj, and others, including other private companies, floated various schemes between July 2008 and September 2009 and cheated various depositors by collecting deposits from them on the false promise of high returns.
Apart from default sentences, they have been given seven years RI under section 120B r/w 420 of the Indian Penal Code (IPC), seven years RI under section 420 of the IPC, three years RI under section 4 of the Prize Chits & Money Circulation Schemes (Banning) Act and 10 years of Section 5 of the TNPID Act.
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