A case was filed on Friday against seven persons including former BJP MP Abhishek Singh and ex-mayor Madhusudan Yadav for their alleged connection in chit fund scam here in Rajnandgaon, police said.
While Abhishek is the son of former chief minister of the state, Raman Singh, Yadav served as a mayor of Rajnandgaon Municipal Corporation.
"Five FIRs have been filed against seven persons, including former MP and ex-mayor Abhishek Singh and Madhusudan Yadav respectively in connection with cheating investors. The case was lodged after the order issued from the District Sessions Court," police said.
Abhishek has been accused of promoting a chit fund company called Anmol, they said.
The case has been registered against the accused under Section 3,4 and 6 of the Prize Chits and Money Circulation Schemes (banning) Act and Sections 10, 420 and 34 of the Investor Protection Act.
"Registering a case under Section 420 is itself a "chaar sau beesi" (fraudulent activity). Neither court nor police are hearing us. There is nothing to worry about as we had no connection with the company and its investors. Will go to court and fight the case legally," Yadav said.
The FIRs have been lodged against Abhishek and Yadav at Lalbagh Police Station and Khairagarh Police Station in Rajnandgaon.
( With inputs from ANI )