MBA grad lost Rs 14cr to SpeakAsia

Mumbai - 10 August 2011: The police on Monday received 100 more complaints against Singapore-based online consumer survey company SpeakAsia, accused of cheating investors of crores by promising them huge returns on their investments. Among the victims who recorded their statements with the police was a 26-year-old MBA graduate, who had set up aSpeakAsiafranchise and lost Rs 14 crore.

On Monday morning, over 150 people panelists (members) of SpeakAsia, along with friends and relatives, gathered outside the police commissioner's office demanding a fair probe into the case. While most supported the company, some were convinced that the police had arrested the firm's chief operating officer, Tarak Bajpai. Initially, the firm, through e-mails, informed its clients that Bajpai was detained for questioning and later released. "When we told the firm's supporters about the people who lost money in various schemes, they agreed to file complaints with us," said a police officer.

The firm's nearly 70 accounts in various banks with a collective balance of over Rs 140 crore have been frozen till Monday, said another police officer.

Sharad Yadav, one of SpeakAsia's many franchisees, told TOI, "Between February and May, I invested Rs 4 lakh. Besides this, people would contact me to purchase personal identification number (PIN) for Speak Asia.

I soldpersonal identification numbers(PINs) and empanelled many sub-panelists. I gave the company a business of Rs 14 crore. I was promised a 3% commission on every PIN of Rs 10,000."

Yadav said that he did not withdraw money from the account thinking it will be doubled with time but the firm stopped making payments all of a sudden. He said he can't shut his office as the investors may attack him. "I am paying Rs 2.5 lakh as maintenance for the office and it's adding to my losses," said Yadav, who had taken Rs 2 lakh from his sisters and another Rs 2 lakh from his parents to invest in SpeakAsia.

The economic offences wing (EOW) is questioning Bajpai (36) and his four colleagues-technical head for the portal Rajeev Mehrotra, assistant for daily portal operations and in-charge of regular pop-ups Shaikh Rais Latif (32), accountant Ravi Janakraj Khanna (44) and Deepankar Sarkar. The police said the fraud amount has crossed Rs 2,276 crore but by going the number of investors the amount duped is more than
could be more than Rs 14,000 crore. given the number of victims.

The company promised to give a return of Rs 52,000 on an investment of Rs 11,000 a year. There are more than 20 lakh investors across India who were known as Panelists. The company had 150 franchises across the country and 18 in Maharashtra. This firm had transferred crores of rupees to an account in United Bank ofSingapore.

source: TOI