THE CBI has booked former TMC MP K D Singh and his son in connection with an alleged chit fund scam in Uttar Pradesh. The agency has alleged that a company floated by Singh promised investors returns up to 10 times of investment but many investors never got paid.
Singh was a Rajya Sabha MP between 2010 and 2014 representing TMC. The case was earlier registered by UP police and transferred to CBI on request of the UP government.
“The CBI has registered a case against former Member (Rajya Sabha); his son and seven others on the request of Uttar Pradesh Government… and has taken over the investigation of the case Crime No.034/2021, earlier registered at Police Station Kotwali, Azamgarh (UP) on the allegations of cheating & misappropriation of about Rs 100 crore invested by a large number of private persons in two private companies (Chit Fund Companies) on false promises by the accused,” the CBI said in a statement.
The agency on Tuesday conducted searches at 12 different locations, including in Chandigarh, Delhi, Haryana, Bihar, Punjab and Uttar Pradesh, which led to recovery of incriminating documents, it claimed.
The case was registered on a complaint of one Vijay Kumar Chauhan, alleging cheating and misappropriation of funds invested by him and others in Singh’s companies: Alchemist Infra Reality Limited and Alchemist Township Limited.
Chauhan alleged that he was given false promises to make the investment twice, thrice and 10 times within a period of six years,…
