Kindo had been on the run for over a year
According to a report in PTI, the managing director of Sambandh Finserv Pvt Ltd has been arrested on charges of embezzling more than Rs 100 crore in the name of lending. The Orissa Police Economic Crimes Branch has arrested Deepak Kindo, a fugitive for more than a year, in connection with the case. The firm’s job was to raise funds from various sources to lend to self-help groups and the weaker sections of society.
Rs 109 crore was raised on forged documents
Kindo’s company collected Rs 109 crore from various investors or lenders on the basis of forged documents, police said. However, instead of lending to the needy group, he deposited the money in the accounts of his relatives and related subsidiaries.
The company is on the RBI’s radar
The company’s operations are already in question. That is why the regulators of the banking sector Reserve Bank It was given a show cause notice last year. The Reserve Bank had at that time issued a show cause notice to revoke the license of ‘Sambandh Finserv’. The RBI had said at the time that the company’s net worth was below regulatory norms. At the same time, the financial situation continued to deteriorate.
The business started in 2006
Sambadh Finserv Limited started its microfinance activities in 2006. It was started by Levins Kindo, an IAS officer of Odisha cadre, as a unique project of Regional Rural Development Center (RRDC). RRDC was functioning as a state level NGO at that time. It was also started by Levins Kindo. He later became chairman of the Relationship Finserv. He died in April last year.
Created in 2009 NBFC
Relationship Finserv was transformed into a non-banking finance company in 2009. Not only this, in the year 2013, it also got the license of NBFC-MF from the Reserve Bank. The company was headquartered at Rourkela, Odisha. Its business was conducted in every district of Orissa, extending its reach to neighboring Chhattisgarh, Jharkhand, Bihar and Gujarat.