GMT not registered, illegal to take deposits: Police
Source: Chronicle News Service

Imphal, May 26 2021: Grow Manipur Team (GMT), a private finance company, is found to have been not registered with Reserve Bank of India (RBI) and Stock Exchange Board of India (SEBI), in addition to not having the license to accept monetary deposits from the people.

Briefing media persons on Wednesday, Bishnupur district SP Priyadarshini Laish-ram said that a complaint was filed by an investor that GMT had defrauded the investor of Rs 29 lakh.

Based on the complaint, a case bearing FIR No.37 (5) 2021 MRG PS u/s 420/406/506/120-b IPC under Prize and Chits Circulation Banning Scheme was registered at Moirang PS and conducted an investigation.

During the course of the investigation, eight people, namely scheme master-mind/GMT founder Pukhram Maikel Singh (30), his wife Pukram Babita (28), mother Pukhram Rebati (53), father P Jiten (61), sister Pukhram Renuka (28), brother-in-law Khundrakpam Bikahs Singh (23), sister-in-law Khundrakpam Jenny (22) and one GMT associate Keisham Ulen were arrested on May 21 and remanded in police custody till May 27 .

It was found that the eight arrested people along with 7 others were planning to flee to Russia after the Covid restrictions in India are lifted.

Their passports and flight tickets were seized from a travel agent based in Thoubal.

In addition, important documents, computers, GMT seals, deed agreements, land records, cash counting machines, valuables, bank documents, debit cards, pass books, receipt books, etc., were also recovered from the offices of GMT, along with 5 luxury cars, a Harley Davidson bike, Rs 7,66,730 in cash and gold jewelries worth Rs 10,00,000.The bank and demat accounts of 17 people associated with GMT were obtained and banks concerned and SEBI have been intimated for freezing these accounts, the SP revealed.

Further stating that the police investigation has so far established that Pukhram Maikel is running two other schemes, namely Skyway Russia and Bulls and Bears with his family and close relatives operating the head office located at Pukhram Leikai Moirang, the Imphal Branches in Keishampat Leimajam Leikai and Ghari Mamang Leikai, offering the following schemes - GMT Invest, 10X Scheme, GMT Mega Lottery and GMT Houru Lottery, Priyadarshini informed that both RBI and SEBI have confirmed that GMT is not registered with them nor has it been licensed to accept deposits.

As per the investigation, GMT collected deposits from investors after promising a payout of 7-10 per cent return per month.

Based on the evidences collected till date, the number of depositors under the scheme for 2019-2020 is estimated to be around 5100 from almost 18 states of India including Manipur, she said.

It is informed that from the receipt books seized in connected with the case several crores of rupees were deposited to GMT during the years 2019, 2020 and 2021.Investigation is underway to ascertain the actual number of depositors and the quantum of money collected by GMT.

It was also found that GMT had no bank account of its own and all transactions were done through the bank accounts of Pukhram Maikel, his family members and close relatives, the SP maintained.

She further stated that the modus operandi of GMT was to collect deposits from new investors and paying off the old depositors, which are characteristic of a ponzi scheme.

The total amount of money GMT invested in the stock market is only Rs 2 crore, although GMT does not possess any valid license to invest public money in the stock market.

On top of this, GMT was found misappropriating the money of the depositors including using the money to pay off the depositors of Skyway Russia.

As the scheme is found to be in contravention of several regulatory norms/ provisions and misappropriation, The Banning of Unregulated Deposit Schemes 2019 Act and Offences under 403 IPC (Misappropriation of Funds) have been added in the FIR, she said and informed that so far, the district police have received 11 complaints from other investors of GMT which will be examined in the course of the investigation.

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