Anchor group director arrested in Rs 26 crore cheating case

Feb 22, 2013, 07:08 IST | A Correspondent

The Economic Offences Wing (EOW) arrested Mehul Shah, the director of Anchor group of companies and co-owner of the erstwhile IPL franchise Kochi Tuskers, in connection with a Rs 26-crore cheating case registered against him

The authorities have also arrested his co-directors Sanjay Shah and Atul Shah. The Sessions Court rejected his plea for bail and ordered his arrest by the EOW. Speaking to MiD DAY, Additional CP (EOW) Rajvardhan Sinha said, “We have arrested the accused and they will be produced in court on Friday.”

A case was registered against him and 11 others after Indur Chaudhary, owner of Art advertising and marketing and father of actor Ashish Chaudhary, lodged a complaint against him. In his complaint, Chaudhary alleged that some of his former employees had diverted funds and poached some of Chaudhary’s clients to their new advertisement firm. According to the complaint, the employees floated a new ad firm Red C Advertising in connivance with directors of the Anchor Group.

Chaudhary said the former employees had signed a memorandum of understanding (MoU) with the employees to compensate him for the losses he incurred owing to them but subsequently, they had refused to honour the commitment and Chaudhary alleged he was cheated to the tune of Rs 26 crore. In September last year, the Anchor Group had issued a statement saying they had business dealings with the firm floated by the former employees, but had nothing to do with Chaudhary’s company, hence, the allegations against Shah were baseless.

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