“You Have Our Sympathy, But We Can’t Take It On Ourselves To Collect & Distribute Money”: SC On Victims Of Ponzi Scheme

first_imgTop Stories”You Have Our Sympathy, But We Can’t Take It On Ourselves To Collect & Distribute Money”: SC On Victims Of Ponzi Scheme Mehal Jain18 Nov 2020 4:15 AMShare This – xThe Supreme Court on Tuesday asked for suggestions as to the relief which it may grant to the victims in the 2018 ponzi scheme run by Future Maker Life Care Pvt Ltd, which involved a fraud of thousand of crores of rupees.The writ petition by the aggrieved was being heard by a bench of Justices L. Nageswara Rao, Hemant Gupta and Ajay Rastogi.”You have our sympathy, but the Supreme Court is not…Your free access to Live Law has expiredTo read the article, get a premium account.Your Subscription Supports Independent JournalismSubscription starts from ₹ 599+GST (For 6 Months)View PlansPremium account gives you:Unlimited access to Live Law Archives, Weekly/Monthly Digest, Exclusive Notifications, Comments.Reading experience of Ad Free Version, Petition Copies, Judgement/Order Copies.Subscribe NowAlready a subscriber?LoginThe Supreme Court on Tuesday asked for suggestions as to the relief which it may grant to the victims in the 2018 ponzi scheme run by Future Maker Life Care Pvt Ltd, which involved a fraud of thousand of crores of rupees.The writ petition by the aggrieved was being heard by a bench of Justices L. Nageswara Rao, Hemant Gupta and Ajay Rastogi.”You have our sympathy, but the Supreme Court is not the right place. There are 100s of people who have cheated thousands and lakhs of people. We can’t take it upon ourselves to collect and distribute money”, said Justice Rao.”In the Saradha chit fund case, the Supreme Court had transferred all petitions to itself as several pleas had come to be filed in different states. In the present case, transferring all petitions to one place may be one idea, but such a transfer to the Supreme Court or one High Court will not help you. Your concern is money- how is to be collected? By sale of property? How is it to be distributed? We can’t take this on ourselves”, continued the judge.”In the Sahara case also, the SEBI was asked to look into the fraud by the company, the issue of fictitious investors. It was not asked to collect and distribute money…”, pointed out Justice Rao.After a considerable conference with the members of the bench, Justice Rao said to the counsel for the petitioners, “You have our sympathy, but tell us how to give you relief. Give us suggestions…otherwise, we can’t oblige”The matter was adjourned by 2 weeks to afford time to the petitioners to come up with suggestions.Reportedly, FIRs were filed against the company and its directors by Telangana police in March, 2019 for cheating the common public by propagating a false theme of ‘a life turning opportunity to earn income Rs 20,000 to Rs 10,00,000 per month’ and “inviting innocent public” to become members of their ponzi pyramid scheme in the guise of direct selling multi-level marketing by selling worthless products such as suit length and edible products.Investigation under the provisions of PMLA revealed that funds were fraudulently collected from the subscribers as deposit towards membership in the scheme through a chain of agents spread across India. These deposits collected through the schemes were illegally diverted into the personal accounts of the directors, their family members and other associates, it said.Funds were also diverted to other shell companies incorporated by the two directors.Next Storylast_img

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