Bhopal (Madhya Pradesh): The Crime Investigation Department (CID), in its ongoing probe into the Rs 42 crore chit fund scam, has found links to Mumbai and Rajasthan, officials said on Tuesday.
The scam was reported in Tikamgarh, Vidisha, Ashoknagar and Damoh, where nearly 820 investors were allegedly duped with promises of doubling their money.
Earlier, director general of police Kailash Makwana had handed over 11 cases to CID. Officials suspect it as a large Ponzi scheme.
A team of CID officials from Jabalpur and Bhopal is investigating the offences under the supervision of the inspector general of police, CID.
Flaws in earlier investigation
In the earlier investigation, the local police finished the work by arresting the local connections or the accused in the scam. In the actual case, the money was allegedly taken by the racketeers.
Those who were arrested were workers of the organisation and were carrying out work assigned by the organisation's directors. These workers were part of the scam, but not the main culprits.
Money trail not investigated
When the local police investigated the case, they did not trace where the money collected by the office-bearers of the chit fund organisation was sent.
In the actual case, the money collected from local investors was sent to Mumbai, Rajasthan and other places.
A small part was allegedly retained by the local collectors to run the office and pay salaries. Thus, the local police ignored a major aspect of the investigation.
