Kolkata, 26 August: The Enforcement Directorate (ED) on Saturday arrested two directors of a West Bengal-based company in connection with a ponzi scheme and diversion ?1,786 crore worth of public funds.
The ED in a statement said, ””Prabir Kumar Chanda and Pranab Kumar Das, directors of MPS Greenery Developers Limited, were arrested on August 24 and a special Prevention of Money Laundering Act (PMLA) court in Kolkata sent them to ED custody till September 1.
MPS Greenery Developers Limited raised funds of about Rs 2,682 crore during 1999-2000 to 2013-2014 from investors through various “fraudulent” income schemes, by issuing agro, orchard and teak bonds in violation of norms of banking regulator RBI and markets regular SEBI, it alleged.
The company was controlled and managed by its CMD Pramatha Nath Manna, the two arrested directors and other associates.
The central agency claimed that the funds were ultimately withdrawn as cash, diverted to third party entities and properties were acquired in the name of directors and their family members.
