| Address: Mumbai City, Maharashtra |
Wekalp Trade Solutions, ostensibly a commodity broker, is mainly engaged in lifting massive public funds through MoUs which are executed on stamp paper but not notarized. The public funds are lifted as term deposits, typically for a 20 month period and are divided into 3 categories, viz.
1. 5+5% - where 5% monthly interest and 5% of the principal are paid to the investors in 20 monthly installments over 20 months. (Yield 200%)
2. 6.67% - where 6.67% monthly interest is paid to the investors every month over a 20 motnh period and at the end of 20th month, the principal is also refunded. (Yield 233%)
3. Fixed deposite, which gived 300% return upon maturity in 20 months.
All above ROIs are exhorbitant and the business is conducted in a shady and illegal manner, e.g.
a) 90% of the publica funds are collected in cash and monthly installments are paid in cash. Monthly payments are sent to the branch offices through "hawala" and distributed in cash.
b) 10% public funds which are collected through cheques and then monthly interested are paid through cheques, are paid without deduction of TDS at source.
c) Since January 2012, the interest payments have been paid out with delays, which started with 2-3 days delay, then climbed to 15 days delay in February and in March the payments have stopped altogether. Issued cheques have been bouncing.
The branch offices have been inventing excuses ranging from Yeas End Audit (what audit before FY is over??), Hawala tallies (!!!), CMD's father's death (but a new office was inaugurated in Nashik, 2 days after the death) and finally a moratorium on all payments because of year end closing (but post dated cheques have been issued for March !!!).
It is estimated that Wekalp Trade Solutions has lifted 200-500 crore rupees from middle class individuals. Entire operation stinks of grey market orientation, conducted with the blessing of police and politicians. Myanak Dhruv, the CMD is the husband of an ex MLA and the Nashik office is fully staffed by people connected with police department.
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His partner Mr Bhalerao Mr Santosh Mr Ugale Have given commitment that amount will be given by 20th Sep 2012. If they fail to do that we will add their name in FIR.