By Our Correspondent
BHUBANESWAR: Economic Offences Wing, Odisha police, arrested and brought on remand the accused Saiyyad Jiyajur Rahaman (D.O.B-01.01.1977), S/o-Manirul Huda, Permanent Address- At-Ayam Paharpur, PS-Tarekeswar, Dist-Hoogly, West Bengal on 12.07.2024 as per the orders of Hon’ble ACJM, Barrakpore, WB, who was detained by BOI (Bureau of immigration) at NSCBI Airport, Kolkata on his return from Dubai pursuant to an LOC ( look Out Circular) opened as per the request of EOW, Odisha, in EOW PS Case No. 07 dt. 27.05.2024 U/s 406/ 420/ 467 /468/471/120-B IPC R/w Sec. 6 of OPID Act, 2011. The accused is going to be produced before the Jurisdictional Court i.e. Hon’ble Designated Court under OPID Act, Cuttack, today i.e. 13.07.2024.
The case was registered on the written allegation of Sri Arun Kumar Pattanaik of Village-Besalia, Gundichhapada, PS-Sadar, Dist-Dhenkanal against the arrested accused Saiyad Jiyajur Rahaman, proprietor of the LFS Broking & PMS Services for duping him and his relatives more than 20 lakhs in the name of Share Trading and paying monthly interest of 2% on the invested amount till the final return of the capital amount. It was also alleged that he has cheated hundreds of investors like the informant in Odisha of the amount that runs in crores.
As found on investigation, the arrested accused Saiyad Jiyajur Rahaman is the proprietor of LFS Broking and PMS services. Earlier he was Director of the LFS Broking Private limited which is registered with ROC, Pune, Maharashtra and was authorized by SEBI. Subsequently he became the proprietor of similar sounding name “LFS Broking and PMS Service (portfolio management service)” to trade as a broker in share trading. The accused by befooling the general public (They were in the impression that they are depositing money in LFS Broking pvt Ltd) collected crores of Rupees for share trading in the account of LFS Broking and PMS Service.
As unearthed during investigation, the accused had collected more than 600 Crores from the public belonging to States like Odisha, West Bengal, Bihar, Maharashtra, Jharkhand and Gujrat through the unauthorized account of LFS Broking and PMS Services in the name of share trading instead of the authorized account of M/s LFS Broking Pvt. Ltd. Further, the accused in order to attract more number of investors, was promising to pay additional 2% monthly interest on the invested amount.
After paying some initial monthly returns of share trading and additional interest, the accused stopped making any further payment and remained absconded since July 2023. He has collected around 100 Crores from the investors of Odisha alone.
The accused also owns/controls the “Arambagh hotels and resorts private limited”. He had two wives ie Habiba Begum and Ranjita Mahajan. Both are directors of the Arambagh Hotels & Resorts Private Limited. It was found that huge amount of money has been diverted to this company too.
Recently, due to the fraudulent activities, SEBI had barred the accused MD Saiyad Jiyajur Rahaman for five years as a stock broker. And also banned the portfolio Manager, Depository participant and Research analyst.
Though the account of LFS Broking Pvt. Ltd. was the authorized account for trading by SEBI yet the accused used the account of its proprietor firm “LFS Broking and PMS Service”.
In order to attract/induce the investors the accused also promised 2% monthly additional interest other than share trading.
He was inducing the public through the agents apart from holding meetings at different places.After collecting the amount in the unauthorized account, the accused was diverting the amount to many others accounts mostly to the sister companies like Arambagh Hotel and Resort Pvt. Ltd. and many others.
He absconded and fled away to Dubai and Bangladesh to avoid arrest. LOC was opened against him on the request of EOW, Bhubaneswar. While returning from Dubai, the accused was detained at Kolkata Airport by BOI.
Investigation, so far, suggests that the accused made unauthorized collection of Rs.600 Cr. from the investors of Odisha, West Bengal, Bihar, Maharashtra, Jharkhand and Gujrat, from 6219 investors.
SEBI has banned the accused as a stock broker for period of 5 years, and also banned the portfolio Manager, Depository participant and Research analyst.
During investigation, many incriminating articles/documents have been seized. Investigation The investigation of the case is on.
