Organic farming scam: Husband-wife duo nabbed for hiding fraud proceeds

Ludhiana: Six months after Khanna police registered a case related to the "Generation Organic Farming Firm" Ponzi scheme — in which innocent people were allegedly duped through a fake investment plan — police have arrested a couple linked to the fraud. They have been identified as Jatinder Singh of Khamano in Fatehgarh Sahib and his wife, Jaswinder Kaur.According to police officials, the couple allegedly used the bank account of their minor daughter to park proceeds of the scam. Authorities said Jaswinder Kaur, who was the guardian of the account, had been operating it to deposit money generated through the purported "organic farming" investment scheme. Investigation indicated that transactions worth around Rs 5 lakh to Rs 6 lakh were routed through the account.Officials added that Jaswinder Kaur was aware that the account was being used to stash fraudulent money but continued operating it. Both she and her husband allegedly kept carrying out their activities despite knowing the nature of the funds involved.The case, registered last year, pertains to a large-scale fraud in which Generation organic farming firm allegedly lured investors with false promises of high monthly returns and doubling of investment within a fixed period. Police had launched a detailed investigation into the financial trail, property acquisitions, and bank accounts connected to the firm.Officials said the arrests mark another step in the ongoing probe, which continues to uncover how money collected from investors was diverted, deposited and utilised. The couple is now under further questioning as police examine the roles of additional individuals and financial channels connected to the fraud.Box 1:On Oct 16 last year, Khanna police said that investigation so far suggested that there were 23,249 investors and total investment stood at over Rs 170 crore. A total of 44 bank accounts (21 of the company and 23 personal) have been frozen. Also, six benami (proxy) properties have been traced and verified.Box 2: Modus OperandiAs per the police, the firm lured innocent people by promising 8% monthly returns on investments — claiming that money invested in the firm would double in 25 months. "They deceived investors saying that the firm was engaged in the organic products business, including supply of vermicompost manure and developing organic farming projects worth Rs 20 lakh each. However, they failed to fulfill their promises. The accused later used the money to buy land, which they resold at higher prices, earning threefold profits," police said.