JVG group owner arrested for cheating lakhs of investors
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The Delhi Crime Branch on Monday arrested the chief managing director of JVG group, Vijay Kumar Sharma (51), who has been on the run after allegedly duping lakhs of investors. The police said he was carrying a .32 bore pistol with five live cartridges.
Sharma was declared a proclaimed offender in 2011. A reward of Rs 1 lakh was declared after he went into hiding.
Additional Commissioner of Police (Crime) Ravindra Yadav said, "On receiving a tip off we laid a trap at the Kailash Colony Metro Station. The accused, who was driving a Mercedes, spotted the police party and tried to flee, but our men chased and arrested him."
Sharma started his career as a building material supplier in the 80s, and launched JVG group in 1989. He built a colony on Noida-Dadri road, which was later declared unauthorised. In 1992, he bought Appu Ghar in Meerut.
Police said in the late 90s Sharma floated 17 companies across the country and cheated many investors.
In 1997, Sharma's company collected Rs 45 crore from investors from a public issue. The SEBI ordered the company to return the money to the investors. In October 1997, the Reserve Bank of India banned all non-banking financial companies of the JVG group from accepting deposits from the public.
The company then closed its offices in Maharashtra, Uttar Pradesh and Bihar.
This created a panic among depositors and several cases were registered against Sharma across the country. He was arrested by the Delhi Police from Mumbai in 1999, and later granted bail.
Sharma again duped thousands of people in 2004-05 with the promise of providing affordable housing, the police said.
His two companies collected Rs 500 crore from the public, and then he went missing.