Sections of the Banning of Unregulated Deposit Schemes 2019 Act have been added to the FIR. The bank and demat accounts of 17 people associated with GMT were obtained and concerned banks and SEBI were intimated for freezing these accounts. Many are worried about their investments
TFM Report
The noose around the Grow Manipur Team (GMT) tightened as the Investigation by the Manipur Police into the infamous scheme revealed the GMT has been collecting deposits from new investors and paying off the old investors, characteristic of a ponzi scheme. And in a first for the state, sections of the Banning of Unregulated Deposit Schemes 2019 Act have been added to the FIR.
The bank and demat accounts of 17 people associated with GMT were obtained and concerned banks and SEBI (Securities and Exchange Board of India) were intimated for freezing these accounts, according to the police.
Following a complaint by an investor, that GMT defrauded the complainant of Rs 29 lakh and also based on an earlier enquiry conducted by Bishnupur police, a case was registered with Moirang police under 420/406/506/120-B IPC, Prize and Chits Circulation Banning Scheme.
Accordingly, Bishnupur District police teams under the supervision of Bishnupur SP Priyadarshini Laishram arrested eight individuals from their residences at four places of Imphal West and Bishnupur Districts on May 21 and remanded into police custody till May 27, 2021.
The arrested individuals were — Pukhram Maikel Singh (30) S/o P. Jiten Singh, founder of GMT; His wife Pukhram Babita (28); His mother Pukhram Rebati (53); His father Pukhram Jiten Singh (61); His sister Pukhram Renuka (28) of Moirang Pukhram Leikai, Bishnupur; His brother in law Khandrakpam Bikash Singh (23) S/o Kh Basanta Singh; His sister in law Khundrakpam Jenny (22) of Kwakeithel Makha Thokchom Leikai Imphal, and Keisham Ulen (24) S/o K. Akendra of Thangmeiband Sinam Leikai, an associate of GMT.
According to the police, six of the accused persons and seven others were planning to escape to Russia just as COVID Restrictions were lifted. Their passports and flight tickets were seized from a travel agent from Thoubal.
Pukhram Maikel running two other schemes Skyway Russia and Bulls and Bears
Further, important documents, computers, GMT seals, deed agreements, land records, cash counting machines, valuables, bank documents, debit cards, pass books, receipt books etc in huge quantity related to Grow Manipur Team were seized from the production of the arrested persons from their place of arrests and from the offices of GMT.
Five luxury cars, a Harley Davidson motorcycle, cash of Rs 7,66,730 and some gold jewelleries worth about 10,00,000 were also seized. It has also been established that Pukhram Maikel, the mastermind, is running two other schemes besides GMT — Skyway Russia and Bulls and Bears.
Other key members included his family and close relatives and various agents at three offices — Pukhram Leikai Moirang (Head Office), Keishampat Leimajam Leirak (Imphal Branch), Ghari Mamang Leikai (Imphal Branch) GMT, runs other plans — GMT Invest, 10X scheme, GMT Mega Lottery, and GMT Houro Lottery schemes.
The RBI and SEBI have confirmed that GMT is not registered with them nor has it been licensed to accept deposits, according to the police.
During the course of Investigation, it has also been established that GMT has collected deposits from investors after promising a payout of 7 per cent return per month, which rises to 10 per cent based on enrollment figures.
Based on available evidence, the number of depositors in the scheme for 2019 and 2020 is estimated to be around 5,100 from almost 18 states of India including Manipur.
From the receipt books seized in connection with the case, it has been revealed so far that several crores of rupees (mostly cash transactions) have been deposited to GMT during the year 2019, 2020 and 2021. Investigation into ascertaining the actual number of depositors and the actual quantum of money collected by GMT is underway, according to the police.
It was also learnt that GMT possessed no bank account of its own and transactions were done through bank accounts of Pukhram Maikel and his family and close relatives.
Modus Operandi
GMT has been collecting deposits from new investors and paying off the old investors, characteristic of a ponzi scheme. GMT doesn’t have any real investment or profit generating commercial activity. So far, there is evidence that only Rs. 2 crores have been invested in the stock market and also GMT does not possess any valid licence to invest public money in the stock market, according to the police.
As per the Investigation, various cases of misappropriation were also found out such as — paying money from the deposits of GMT to investors of Skyway scheme. The Skyway Scheme is also another matter of investigation in connection with this case, according to the police.
Various land and buildings, luxury cars and valuables were also purchased by Pukhram Maikel and his family and relatives which amounted to grave malpractices. Land records and details are being ascertained for further necessary action.
During investigation, the scheme was further found to be in contravention of several regulatory norms or 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.
As a requisite condition in the Banning of Unregulated Deposit Schemes 2019 Act, the matter was being reported to the concerned designated authority provided in this Act.
According to the police, 11 complaints from other investors of Grow Manipur Team were further received and will be examined in the course of investigation.