Punjab: Former Congress MLA Kotbhai booked for cheating Pearl Group chairman

Former Congress MLA Pritam Singh Kotbhai and five others have been booked for allegedly cheating Pearl Group chairman, the main accused in the multi-crore chit fund scam, police said on Saturday.

Ludhiana Police Commissioner Mandeep Singh Sidhu said three people — Jivan Singh, Dharmvir Singh and Dalip Singh Tripathi — have been arrested while three others, including Kotbhai, are absconding.

Kotbhai, former MLA from Bhucho Mandi, has been booked in several chit-fund scam cases in the past.

Police commissioner Sidhu said a case has been registered on the complaint of the Pearl Group chairman Nirmal Singh Bhangu’s nephew Shinder Singh.

Singh, in his complaint, said that Bhangu, who was shifted from Tihar Jail to Bathinda Jail a few months ago, had met Kotbhai in the prison. Kotbhai, who got bail later, told Bhangu that he had many links in the government and could get him freed if he pays Rs 5 crore, he alleged in his complaint.

According to police, Bhangu agreed to pay Rs 3.50 crore in advance and the remaining Rs 1.50 crore when he gets relieved from jail.

Bhangu shared this with Singh who borrowed Rs 3.50 crore from one Gurdhari Lal on interest and transferred the money into the accounts of different companies as told by Kotbhai.

However, after getting the money, the complainant came to know that all the companies to which the money was transferred were fake. Thereafter, the case was registered under relevant sections of the Indian Penal Code against Kotbhai and five others.

Pearl Group, a chit fund company, had allegedly cheated many people in various parts of the country including Punjab, by illegally operating different investment schemes.