The agents, primarily working for the Life Insurance Corporation, collected money from over 600 investors, a group of cheated persons told media persons today.

A compalint was lodged with Satara city police station on May 28, Dr. Pralhad Pawar, Yuvraj Pawar, A.H. Jadhav and J.H. Patil, who have formed a group of aggrieved investors, said. The police took no cognizance despite spiriting away of over Rs 5 crore and the fate of over 600 persons being in balance, they charged.

According to the group, they invested their hard-earned money in the finance companies which were said to be in business from 1991. The bait was an attractive 25 per cent interest. After getting interest payment regularly for a few months, the companies stoped sending the interest amount since February, arousing the suspicion of the investors.

A few investors approached the local agents, but did not stretch the inquiries as they were informed that the interest amounts were delayed because of annual year-end accounts in March.

But then things began to get complicated. Owenr of Vedika Leasing and Finance, Saurabh Kulkarni, was reported missing and a complaint to that effect was registered with Pune police.

Losing confidence in the company, the investes tried to catch hold of the agents, who joined hands to inform the hapless investors that the amounts collected from then were sent to Saurabh Kulkarni in Pune and that they were just working for commissions. The agents allegedly told the clamouring investors not to trouble them.

Some investors took initiative, tried to approach Vijay Vaidya, the owner of Shree Finance. He told them that Saurabh Kulkarni was working for his company till 1994. He later floated Vedika Finance and Leasing Company and was working independently, Vaidya told the duped investors.

Meanwhile, mother and wife of Saurabh Kulkarni refused to entertain investors and announced severance of all relations with him.

According to the investors, Vaidya, a former employee of a Satara-based bank, floated Shree Finance & Leasing Company after he retired in 1991. Saurabh was working with Vaidya till 1994 when he separated and launched his own Vedika Finance and Leasing Company.

Taking advantage of his contacts with collection agents in Satara, most of them connected with the LIC, Kulkarni's Vedika Company expanded its network. The company initially offered lucrative returns to the agents and attractive gifts to the investors.

A number of professionals and others invested with Vedika Finance and enjoyed the returns till February this year. Saurabh, said the investors, used to personally collect money from the agents at Satara.

Investors also met Deputy Chief Minister Gopinath Munde when he visited Satara in May '98. Munde assured them that the the case would be handed over to State CID, the investors said.

Even as Satara police did nothing, Saurabh Kulkarni was traced by the Madhya Pradesh police in Indore on the basis of a missing report which his mother had lodged with Pune police. Kulkarni was nabbed along with Rs 3 lakh in cash, it was then stated.

Saurabh's mother and wife, who earlier had disowned him, went to Indore and got him released on bail. But he reportedly managed to repeat his vanishing trick whle returning from Indore by a bus.

The story, according to the investors, is hard to believe. The Kulkarnis may be planning to leave the country with Saurabh, they suspect.

The investors suspect that Vedika Finance and Leasing Company has collected deposits from Pune and other parts of the State as well.