It’s a Times of India report, filed by reporter Mateen Hafeez and published on 07 Sep. 2014, which I have pasted at the bottom of this post along with its Web-link.
The report says that PHFI lost Rs 82 crore to a “cash credit scam” involving the lure of big “returns on fixed deposits and later withdrawal of money through cash-credit using these FDs”.
According to my sources, PHFI lost “more than Rs 100 crore” to the scam. That’s what I said in my article published on this site on 16 Feb. 2018.
I stand by that.
According to the latest information I’ve gathered from my sources, PHFI lost Rs 108 crore to a fixed deposit swindle in the year 2013-14, which was more than half of fund corpus.
That left only about Rs 100 crore of fund corpus out of which about Rs 20 crore was frozen as security, sources said.
Manmohan Singh government had in 2006 (i.e. the year PHFI was set up) contributed Rs 65 crore to PHFI fund corpus to be primarily used for setting up two public health schools.
That grant has been wiped out, which means PHFI now has hardly any money to build upon large pieces of land acquired in states, sources said.
"PHFI is currently sitting on about 160 acres of land, acquired from state governments for free, most of which is lying vacant. It has no wherewithal to build on that land. So it's nothing short of land grab,” my sources told me.
Now that I have found one media report that refers to PHFI in connection with the fixed deposit scam, the statement I included in my 16 Feb. article that "no media organisation has written or shown anything that will name PHFI in connection with the scam" stands amended.
Mumbai economic offences wing files four chargesheets in fraud casesMateen Hafeez | TNN | Updated: Sep 7, 2014, 21:08 IST
MUMBAI: A 35-year-old MBA, who claimed to be a financial consultant, was charged for his alleged role in the cash-credit scam two days ago.
The economic offences wing (EOW) of the city police filed four separate chargesheets against the accused, Anil Pawar, where the accused along with his associates had duped the south Indian education society (SIES) of Rs 38 crore.
Pawar, who stayed in a chawl at Tardeo, had approached the SIES authorities claiming to be a financial consultant and stated that he had strong connection in some nationalized banks.
“If you invest money in fixed deposits in certain banks, you will get one per cent more interest due to my connection. Besides this, we are running a company which will get commission and from this we will give you one more per cent on your total investment,” Pawar reportedly told SIES authorities.
SIES, in the four FIR, has mentioned cheating amount up to Rs 38 crore. The accused forged papers and on the SIES FDs, they availed the cash credit facility.
The fifth FIR, filed by the SIES, is currently under probe.
“He worked as a senior manager with a Financial Information Source firm before being sacked due to some internal problems. Even after he was sacked, he would use the business card of this firm,” said the investigating officer.
His three associates, Mohammed Fasih, chairman and managing director of the Showman Group that runs the countrywide Sheesha lounge chain, Avinash Khandale and Roy Josesph will be charged next week, said police.
The EOW registered nine criminal cases against the accused. It is currently probing seven more complaints (cheating amount Rs 101 crore) against them for targeting various private and government institutions by luring them huge returns on fixed deposits and later withdrawing money through cash-credit using these FDs.
In all the nine FIRs, the accused are suspected to have cheated several institutions of Rs 227.38 crore. Besides this the latest seven enquiries are looking into cheating of Rs 101.5 crore.
All the four accused currently in the Arthur Road jail while the police have issued look out circular notices against five accused to all the airports in the country.
The police are probing the cash-credit fraud and how the money went to Fasih’s company accounts using the affected FDs.
The latest complainants are Mahalaxi trust (Rs three crore cheating case), Public Health Foundation of India (three separate complaints of collective cheating amount Rs 82 crore), Akhil Bharat Varshiya Marvadi Jatiye Kosh (Rs 8.5 crore), M/s Market Place Technology pvt Ltd., (Rs three crore) and Ayurved Prachar Sanstha (Rs five crore). The investigation of Mahalaxi temple trust has been entrusted to the Gamdevi police station.
Police probe found that the loans availed on SIES FDs were diverted to Bhairav Trading, Yashraj Enterprises, Shivam Trading, Darshan Sales, Lovely Fabrics, etc, and after a series of transfers ended up in Showman Group's bank accounts.
Fasih, also a Bollywood producer, after spending 15 days was sent to the Arthur Road along with his cronies. So far, 50 bank accounts belonging to Fasih, his company and cronies have been frozen that contain Rs 5.5 crore.
This post contains the following Web-links.