A special court in Mumbai has sentences a 71-year-old man to three years imprisonment for investment fraud. Dhirajlal Damania, a car dealer, was found guilty of criminal breach of trust for failing to return ₹1.39 crore to investors.
- Between 1993 and 1998, Damania lured investors with promises of high returns – 18% annually – on their deposits.
- The Economic Offences Wing (EOW) registered a case against Damania, his wife Geeta, and businessman Atyam Mohan in 2002 based on a complaint filed by several investors.
Scheme Disclosure
- Investigation revealed that Damania borrowed money supposedly for investment in one of his companies.
- Investors initially received interest payments until July 2000. However, payments abruptly stopped soon after.
- The company eventually shut down, leaving investors with no way to recover their principal amount.
Legal Action and Verdict:
- Laxmidas Thakkar, one of the defrauded investors, filed a complaint against Damania.
- The court found Damania guilty of criminal breach of trust and sentenced him to three years in prison.
This case highlights the importance of investor vigilance and the legal recourse available to those who fall victim to investment fraud.
