The Ramanathapuram police are examining the suspected role of three film producers in a cheating case with elements of multi-level marketing (MLM) operations.
Neethimani, the main accused in the case in which investors were allegedly cheated out of several crores of rupees, has told the Ramanathapuram Bazaar police that he had lured people into investing in his finance company, based on the idea given by the producers. One of them heads a leading production house.
Superintendent of Police V. Varun Kumar told The Hindu that according to Neethimani’s confession, the producers had benefited from his racket.
An estimated ₹7 crore, collected from the public, had been invested in production and distribution of films.
Digital evidence
“We have digital evidence of his conversation with the film producers,” Mr. Kumar said.
Based on the inputs and the bank transactions, the police would consider arraigning the producers, he said. Last month, Mr. Kumar directed the police to register a case on a complaint from Thulasi Manikandan, a resident of TNHB Colony.
For an incentive
The complainant had alleged that Neethimani, his wife Menaka, of Chennai, and Anand, a school teacher in Ramanathapuram, had lured him into investing in their finance company. Similar to the MLM operation, investors were asked to bring in other depositors for an incentive.
Many investors received returns for six to nine months; thereafter, the three vanished.
Last month, the police arrested Neethimani and, based on his confession, widened the investigation that revealed that the key accused had collected huge deposits, amounting to ₹12 crore, from people in Madurai, Sivaganga, Coimbatore and Chennai and even from those in Singapore and Malaysia.
The investors were either given a receipt for the money deposited or post-dated cheques in the name of the company.
However, the company reneged on its commitment, leading to the complaint.