| | Financial criminals hound Goan investors Sandesh Prabhudesai
8 June 1998
Followed by tourists, Goa is presently a major attraction for yet another class of people. They are
normally called cheats or “financial criminals”.
In last four or five years, at least 20 such non-banking financial companies appear to have duped
thousands of Goans for over Rs 50 crore. But the police have not detected a single case till date.
The only sigh of relief now is the ordinance the local Congress government is planning to issue, to
protect interest of the depositors. The cabinet decision has already been taken to issue the ordinance
once centre approves it, after which the bill would be presented in the monsoon Assembly session.
A replica of Tamil Nadu act, the Goa Protection of Interests of Depositors (in financial
establishments) Bill also provides for stiff penal provisions like fine upto Rs one lakh and
imprisonment till ten years to every responsible person of the financial establishment.
Under the act, special court would be set up to deal with all such cases, appointing a judge
equivalent to the rank of district and sessions judge. It also provides for attachment of property of
responsible persons of the NBFCs, in absence of non-payment to the investors.
Though this appears to be a tough step taken by chief minister Pratapsing Rane, his attitude towards
turning blind eye to the demand made by the police department to set up a special cell to deal with
such cases raises suspicion about the whole issue.
According to P R S Brar, the inspector general of police, only trained police officials in financial
matters could investigate such cases. The inexperienced officers would obviously mess up the
whole case, giving enough chance to the NBFCs to get scot free.
In fact the Congress government’s role while dealing with a case of union environment minister
Suresh Prabhu, belonging to the Shiv Sena, is a clear indication that the authorities are not serious
about such scams. Around 200 investors have been duped for Rs 1.20 crore in this case.
The complainants have provided enough prima facie evidence to the police to nab the culprits,
belonging to the Western India Financial Services Ltd, headed by Prabhu. But the police have issued
non-bailable warrants against all others, except Prabhu.
Goa seems to be a favorite state for such fraudulent NBFCs since they can target Gulf-based NRIs
in Goa, who invest lakhs of rupees into such NBFCs, for want of attractive rates of interest. Even
the nationalised and private banks record relatively high amount of deposits in Goa.
The modus operandi is simple. Open posh offices, appoint Goans as managers and commission
agents and win over confidence for at least six months or a year, before disappearing from the
scene.
Heading the list of such frauds is the Rockland Leasing & Plantations Company with an amount of
Rs 17 crore invested by thousands of Goans. Second in the line is the J V J Finance, which had set
up several offices here since May ’96 and attracted deposits of Rs six crore.
Others include Calcutta-based Janapriya with an amount of Rs 1.80 crore, TN-based Sarvana
Credit and Investments Ltd with Rs 1.57 crore as well as Middleman Goa, Woodstick & Woodstick,
Welfare Savings and Credit Ltd, Prudential Capital Market, Deeplaxmi Green Plantations etc.
Complaints filed before the local RBI office as well as at several police stations indicate a
comprehensive figure of only around Rs 29 crore. But police sources admit that the figure should be
at least double and many more cases are expected to come to light.
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