Prominent Indo-Canadian family which set up charitable organization to aid new migrants from India are accused of stealing from those they were supposedly helping.

Members of a prominent family with strong roots and political connections in the Indo-Canadian community are main suspects in a massive foreign exchange scam being investigated by Indian police.

The family, police allege, used a non-government organization based in Ludhiana, Panjab and two foreign exchange businesses in Surrey and Toronto as a cover for their illegal activities to siphon hundreds of thousands of dollars from immigrants who were sending money back to their homeland.

Indian police said they have raided the properties of the family in Panjab and have issued notices for the arrests of Pritam Singh Deol and his sons Rajpreet Singh Deol and Davinder Deol.

All three suspects are believed to be in Canada. They have denied the accusations through Indian media and their supporters.

Pritam was the district president of the Non-Resident Indian Sabha in Ludhiana--an organization established to sort out the problems of Pnjabis who had settled overseas.

Indian media said the group had organised many seminars for the welfare of the Non-Resident Indians and their relatives.

The Deols are accused of siphoning money by operating the Hawala money remittance system, which exists and operates outside of or parallel to 'traditional' banking or financial channels.

The Hawala system was developed in India, before the introduction of western banking practices, and is currently a major remittance system used around the world.

Hawala operators collect money from those wanting to send it overseas and arrange for their contacts overseas to deliver it to the recipient for a fee. Basically the system allows for the movement of money with actual money being moved.

The investigation into the Deols, who operate two foreign exchange currency businesses in Surrey and Toronto, began last August. The family also reportedly owns a palatial house in Mullanpur Dakha in Panjab and operates a business there called Deol Motors.

The Tribune newspaper reported that police had dispatched parties to raid the properties of the Deols last month and has alerted all international airports in India to watch out for the father and sons.

Jagroan District Senior Supt. of Police Rajiv Ahir told media: "After inquiring into these complaints, we found that the Deols who deal in Hawala transaction, had committed frauds. But as the three are likely to be out of the country, we have sounded the alert. We have also dispatched police parties to raid places in India where they are likely to be."

Ahir said one of the victims was Sukhdev Singh, a resident of Koom Kalan village.

He had filed a complaint, stating that he had sent some money through the Deols to his sister in Canada, who was building a house there, but she had not received the money.

Another report by Harnek Singh and Kartar Singh of Aitiyana village alleged that while on one of their trips to India, they were approached by the Deols who had urged them to send money through them.

Back in Canada, Harnek Singh had sent some money and in lieu of that was given a 100 - rupee note with a code written on it by the family, who assured Harnek Singh that on presenting this note, he would get his money plus the commission, which he had not received.

"We have been receiving complaints from people living abroad who have been defrauded by the family.

Judging from the complaints, it seems the family has committed frauds worth crores." Ahir said.

The investigation against the Deols began last August when Rajpreet Singh Deol was arrested and later granted bail.

At that time there were at least six cases registered against the family but police said there were many more.

When Rajpreet was brought to court, the case attracted a huge media throng and a large group of Deol supporters.

One report said: As photographers chased Deol and his supporters, Deol's supporters started hurling abuses on them.

Probably annoyed by the photographers the supporters of Deol, who were in another vehicle, tried to hit them with their car while reversing it.

Luckily no one was injured, the report said.

Last month, a police party swooped down on the properties owned by Pritam Singh Deol and his two sons in Panjab.

Meanwhile, India's Oriental Bank of Commerce said it has taken possession of Pritam Singh Deol's properties for the non-payment of loans worth Rs 57.65 lakh (C$161,061).

Two properties, one situated on the periphery of Bhanor village and the other in Vishal Nagar, were taken over and locked by bank officials last month after negotiations with the Deols failed.