The police arrested the managing director of a chit fund company for allegedly duping 400 investors. The accused, Krishnaprasad, 55, hails from Chennai. He had opened branches in Malleswaram, Chandra Layout, Bagalagunte and Dasarahalli.
Over the last year, he allegedly convinced people to invest money with the promise of high returns. However, according to the police, after collecting Rs. 4 crore, he shut down all the branches.
The Malleswaram police started investigating the case based on a complaint filed by an investor. A senior police officer said, “The accused had opened branches in Tamil Nadu, Andhra Pradesh and Kerala too. Three months ago, the Tamil Nadu police had arrested Krishnaprasad for a similar offence.”
With court permission, the police escorted Krishnaprasad to Bengaluru and got his custody for five days. He told the police that he had to shut down his business after incurring a loss post-demonetisation and inability to return the money of investors.
“We suspect that he may have cheated more people, as many cases have been filed against him in Chandra Layout police station. We are looking for employees of his firm who are local residents,” said a senior police officer.