Two more held in Adarsh Society scam

JAIPUR: The Special Operations Group (SOG) of Rajasthan police arrested two more accused in the Adarsh Credit Co-operative Society scam on Monday. The arrested persons are directors of the society and were nabbed from Gurugram. They will be produced in court on Tuesday. The accused have been identified as Mukesh Modi and Rahul Modi who were brought from Gurugram to Jaipur.
“A special unit arrested the accused and we will produce them in the court on Tuesday for police remand.They were the directors of the society and over a dozen accused have already been arrested till now,” said an official of SOG.
The directors of the society had set up as many as 187 shell companies to divert the money of depositors. All these shell companies operated from a single room located in Gurugram. The accused channelled money into the dummy companies in the form of multiple fraudulent loans.
All the accused had allegedly been siphoning off over Rs 8,000 crore of investors’ money into multiple shell companies in a direct violation of the Multi State Cooperative Societies (MSCS) Act.
The society was earlier registered in Sirohi district before it was extended to Gujarat as a multi-state society. Since 2008, about Rs 8,000 crore have been invested in the society. Almost 75% of the depositors are from Rajasthan. Of the society’s 806 branches, 309 are in Rajasthan.
According to officials, the shell companies owe over Rs 14,000 crore to the society. During the investigation, SOG had also learnt that whenever the complainants confronted the society and demanded their returns, the society would quietly pay them back to ensure that the matter does not come to public notice.