Balaji collected the amount by luring people with attractive interest rates and schemes like ‘saving for jewelry’. The company had promised 12.5 percent interest rates to the depositors. It had also announced up to 60 percent discount on purchase of gold and gold jewelry after a year. The company had been collecting Rs 1,000 per day from depositors for the past many months.
Bal Krishna Baral is the major promoter of the company.
The victims, who reached District Police Office on Tuesday, urged police officials to take action against Baral and return their deposits.
Anish Ansari from Jaispur said he had been depositing Rs 1,000 every day for the past three months. “When I went to the office of withdrawal of my money, the promoters refused,” Ansari, who had deposited Rs 42,000 in Balaji, said, adding: “When I reached the office three days later, the proprietor had already run off.”
Similarly, Narendra Pathayar had deposited Rs 20,000 in Balaji. “Representative of Balaji reached rural areas and collected hard-earned money from poor people,” he said, adding that Baral left for Lucknow after closing Balaji’s New Road-based office.
Another victim Chandra Prakash Tiwari had deposited Rs 60,000 in the company in the hope of getting high interest income. “Most of the depositors are poor people and women who easily fall for pretty to schemes and offers,” he added.
Raj Kumari Chaudhary, another victim, said most of the women had deposited their hard-earned money in the company with the hope of buying gold jewelry at the end of the scheme.
Meanwhile, police have arrested Hari Baral, brother of Bal Krishna. Police personnel are also taking statements from Balaji workers. The workers have told the police that they were not aware of the ill intention of the promoters.
Basanta Pant, Superintendent of Police (SP) of Banke, told Republica that Hari Baral has been released after he made commitment to payback the depositors’ money. “We released him after he signed a commitment letter, assuring the victims to payback the amount,” he added.
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