Alipurduar, March 3: A police car was set on fire near Falakata yesterday after the inspector in charge of the local police station announced over microphone that people should not invest in a Jateshwar-based chit fund that promised double returns in seven to 15 days.

The officer, Farid Hossain, has been benched for the alleged delay in arresting those who ran the company and for also using a microphone when Madhyamik exams were on.

Bankim Debnath, a resident of Assam, opened the chit fund at Jateshwar in December last year. Soon, many people from Jateshwar, Falakata and Birpara, including school teachers, traders and vehicle owners, invested in the company.

Jateshwar is 52km from Alipurduar.

“For two months we have been receiving reports that a chit fund is operating here. I asked the IC to arrest those running it. Recently, he told me that he would use microphone to warn people. I told him not to do so as Madhyamik is on,” said Amit P. Javalgi, superintendent of police, Jalpaiguri.

People in Jateshwar said a mob set fire to the police vehicle as they were angry that the police’s move would make Debnath flee with their money.