Upper secretary cons investors of Rs2.5 crore, absconds

An upper secretary of the legislative assembly has fled after cheating 86 investors in his company of Rs2.5 crore.

While the Worli police have launched a manhunt for him, the assembly has initiated action for his suspension.

According to the complaint, Sudhir Valavi, an upper secretary of the legislative assembly, floated a firm — CDS Capital Build Services — in Bandra (E) two years ago. He convinced some people, including a few of his colleagues, to invest in it, promising a handsome interest of 8%-10%. He then started to advertise his company.

“In the first seven to eight months, he paid the interest on a regular basis but from December 2010, he discontinued it. When asked, he assured of meeting the payments. But those didn’t come through,” alleged an investor, Shree Naik.

Naik then took the issue up with the police. When the cops rolled up their sleeves, they found Naik to be a small fry in a big cheating racket — Valavi had swindled about Rs2.5 crore from 86 investors.

Valavi’s partners — Mohamad Rafique Yasin and Shekhar Kale, who were supposed to handle the investments, were also allegedly ripped off by the Assembly upper secretary.   

Naik claimed that Valavi opened bank accounts in his name about which his partners were not aware of. And he fled after withdrawing the money from the company’s account without Yasin and Kale’s knowledge. He has reported neither at his office nor has been seen at his residence in Worli. The police have released a notice of economic offence against him.

Anant Kalase, principal secretary of the legislative assembly, confirmed that Valavi is involved in the fraud. 

“He has not been attending office for the last two months. We also received complaints against him regarding the matter. We have initiated the process to suspend him. After following the due procedure, he will be suspended soon,” he assured.