Soundcraft Industries Limited Fraud

#1
Interpol looking for Mumbai con man
By: A Mid Day Correspondent
September 13, 2005
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The economic offences wing (EOW) of Mumbai police has issued a red corner notice against con man Rajkumar Basantani (52), who fled the country with his family in February 2005.

According to officials, the Interpol had been intimated and now the US police are searching for Basantani as well.

Fraud over Rs 150 cr

Basantani managed to get away with Rs 150 crore. His method was simple. He floated a company called Soundcraft Industries Limited in 1985, which caught the eye of investors as it offered interest rates as high as 16 per cent.

The 14,000-odd investors later realised they had been conned, as none of them received their money back on the due date in 2002. The fraud came to light when one of the investors, Indravardhan Gandhi, filed a case against Basantani.

Basantani also cheated 20 banks by offering a single flat as a guarantee to different banks, said an official. The banks that were cheated include Vijaya Bank, UTI, Oriental Bank of Commerce, Dena Bank and Punjab Sindh Bank, among others.

Two were arrested

The Mumbai police had earlier arrested two people in connection with this case. Reluman Tekchandani and Vinod Hingorani, the two directors of the company were arrested in February 2005. But, Basantani absconded, said the official.

He will be traced anywhere he goes, as police all over the world will now be looking for him, added the official.
 

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