Malegaon scamster cheat investors of Rs seven crore

Maten Hafeez I TNN
MUMBAI: The Malegaon police are probing a case of cheating wherein the accused lured unsuspecting inventors to fund his business and in return promised a 30 per cent return on the investments. The role of police in this case was criticized for allegedly harassing the victims and delaying the FIR. The initial reports say the fraud amount is Rs seven crore but could go upto Rs 40 crore.


The Azad Nagar police in the textile town Malegaon registered a cheating case against three persons; Shahzad Shaikh, Shahbaz Shaikh and Abrar Ahmed Abdul Aziz. Shahzad has been said to be the kingpin of this fraud. Police sources said that a businessman, Abdul Majid, lodged the complaint. Sources said that Shahzad, who pretended to be a Saree businessman, would buy Sarees from Malegaon weavers and sell it in other cities. "Initially, he gave huge profit and in some cases, the investors were given double profit. Shahzad asked businessmen in the city to invest in his business to expand the network. Many people who had no weaving or Saree selling background also joined hands thinking huge profit," said one of the victims.


"While Shahzad gave money or returns initially, he stopped making payments saying he had not got the money from the buyers. It continued for several months and then people began approaching the police. However, the police role was suspicious. There were allegations of money changing hands. "Most of the victims were treated as accused and thoroughly interrogated. Instead, had the police shown interest in nabbing the accused and interrogating him, victims must have got their money back by now," said a victim.


Shahzad was also summoned to the police station but never arrested. Now, the police have registered the case, the accused is on the run," said another investor, who lost several lakhs. The office bearer of a socio-religious organization is suspected to have lost over Rs two crore in this fraud. A well known spice trader family in Malegaon is learnt to have lost over Rs five crore.


Pravin Padwal, superintendent of police, Nasik (rural), said that the police had just registered the case and was trying to locate Shahzad. "Once we arrest him, we will be able to find out what he did with the money," said Padwal. When asked whether the accused would be booked under the Prize Chits and Money Circulation Schemes (Banning) Act, Padwal said the police will first verify if it was a fit case for the accused. "No victim contacted me. We registered the case soon after some people came to me," he said. However, it is learnt that a group of victims had to approach the state government to get one case registered. When asked whether police will attach Shahzad's properties, if any, or freez bank accounts, Padwal said," I have not been told about his properties or bank account details yet."


The Times of India, June 29, 2012

Policing in Malegaon

Malegaon has always been wrongly termed as a ``sensitive town'' by the media and intelligence department itself. However, the city which has a population of more than eight lakh people has just six police stations with a total staff of around 1,500 police personnel. Cases registered with the police stations range from cheating, theft, house breaking to murder. Maximum number of cases are reported under the ``theft'' column of the Indian Penal Code (IPC).

Malegaon Control room number - (02554) 222003

Police stations in Malegaon:

1) Azad Nagar police station - (02554) 222006

2) Qila police station

3) Aayesha Nagar police station

4) City police station

5) Chhawni police station


The city is supervised by two Assisstant Superintendent of Police (ASP), an additional Superintendent of Police (Addl. SP) and a Superintendent of Police (SP). Currently, Sanjay Mohite, is the SP of Nasik (rural). Malegaon taluka comes under the Nasik (rural) sp'S jurisdiction.

Malegaon will have police museum soon

By Mateen Hafeez/TNN

Malegaon: This textile hub will soon be the first taluka in the state to have a police museum for itself.

Officials feel the museum will preserve items of historical interest and also project the police as a citizen-friendly force. The project, initiated by additional SP Anil Kumbhare, is part of a modernisation plan for the force. The museum is ready to be inaugurated by director-general of police P S Pasricha on 3 April.

Going around the museum will also be an educative experience. It will give visitors an idea of traffic rules, safety measures for senior citizens (through sketches and cartoons) and have an advisory of how to prevent crime. But getting pride of place will be a letter written by Mahatma Gandhi on 23 March 1910 to then Mumbai police chief Griffith.

“The memorabilia include evolution of the traffic system and details of the introduction of a uniform for the force, the first police patrolling (on bicyles), the first highway accident in the world, the installation of the first traffic signal, the first registered accidental death in the country besides crime statistics,’’ Kumbhare said.

The museum will be at the City Police Station that also houses police quarters, a new mess and the additional SP’s office. “We have also obtained some sketches and will have statues that show figures in uniform, including that of the kotwal in Punjab (from 1861), the ceremonial uniform of the police (1873), armed police uniforms in Manipur and MP etc,’’ Kumbhare said.

Citizens can come and interact with officials. A group is now being trained to explain the collections to vistiors.

(The Times of India, April, 2006)