Nirmal Chit Fund scam: Investors block national highway at Parassala

THIRUVANANTHAPURAM: The 1000-odd investors who were allegedly duped by Nirmal Krishna Chit Fund Company blockaded the national highway at Parassala on Wednesday alleging police apathy in registering an FIR against the firm.

Former KPCC president V M Sudheeran, C K Hareendran MLA, K A Anselan MLA, BJP state leader Karamana Jayan, DCC president Neyyattinkara Sanal and CPM district secretary Anavoor Nagappan  offered support to the investors. Opposition leader Ramesh Chennithala wrote to Chief Minister Pinarayi Vijayan urging him to hand over the investigation to the CBI.

The protest lasted for two hours and the traffic along the highway was partially disrupted. The Parassala police have registered a case in connection with the protest. The police slapped Section 294 ( rioting) against the protesters for disrupting traffic.

Later in the day, the action council members met the investigating officer at his office in the city and requested to register an FIR at the earliest. According to investors, it has been two weeks since the promoters of the company went into hiding. The Tamil Nadu and Kerala police have not arrested a single promoter of the company other than two staffers, so far.

Meanwhile, the special investigation team officially started a probe based on the statements collected from around 2,500 investors on Tuesday.  The probe team has already started communicating with the Tamil Nadu economic offences wing and has given all possible assistance to them to trace the absconding promoters, including the key accused Nirmalan Krishnan Nair.  However, the investigators were not ready to divulge details of the investigation.

Nirmal Krishna Chit Fund Company, a finance firm which functioned in Palukal in Tamil Nadu and close to Kerala border, had allegedly duped over 13,600 investors from Kerala and Tamil Nadu who had deposited over Rs 500 crore under various investment schemes on the promise of good returns.

Among them were several people hailing from Parassala, Vellarada and Kunnathukal areas bordering Tamil Nadu. The cheating came to light after the office of the firm remained closed after the Onam break.

The firm had registered the mortgaged properties in the names of the arrested persons. The police said around 16 people went absconding including the key accused.

The firm had collected deposits to the tune of several crores from various persons, including businessmen and politicians, in Kanyakumari and Thiruvananthapuram districts. The company is said to have a strong presence in areas like the Chalai market here. It used to offer returns at the rate of Rs 1,400 per month for a deposit of Rs 1 lakh. Nirmal Krishna Nidhi Ltd also used to prompt the investors to convert the monthly payment from the deposit as chit payment so the amount could be retained by the firm.

Nirmal Krishna Chit Fund Company, a finance firm which functioned in Palukal in Tamil Nadu and close to Kerala border, had allegedly duped over 13,600 investors from Kerala and Tamil Nadu who had deposited over Rs 500 crore under various investment schemes on the promise of good returns.

Among them were several people hailing from Parassala, Vellarada and Kunnathukal areas bordering Tamil Nadu. The cheating came to light after the office of the firm remained closed after the Onam break.

The firm had registered the mortgaged properties in the names of the arrested persons.

The police said around 16 people went absconding including the key accused.