Three film producers on Tuesday were issued summons by Ramanathapuram police for inquiry into alleged financial fraud.
Following a complaint from Thulasi Manikandan of TNHB Colony here, a case was registered against Neethimani, his wife Maneka and Anand, a teacher from Ramanathapuram district.
The complainant said the three producers, Siva of Salem, Gnanavelraja of Thanickachalam Street T.Nagar, Chennai, and Muruganandam of K.K. Nagar, Chennai, allegedly promised to deliver good returns on his investments and lured him to invest in their finance firm. Hence, he invested ₹5 lakh in June 2018.
The business, which was on the lines of MLM, gave incentives to those who referred new investors.
Based on the confession of the key accused, police said over ₹10 crore could have been collected by the firm. Unconfirmed reports, however, indicated that more number of gullible investors parted with their savings. For every ₹one lakh, the finance firm reportedly assured monthly return of ₹5,000. For referral, it was ₹4,000 for each lakh as one-time incentive.
While a majority of investors received returns for about six months, early birds got returns for nine months. Trouble started when the finance firm sought time to repay the principal and even threatened or switched off their phones when investors contacted them. The key accused lured investors in Sivaganga, Madurai, Salem, Coimbatore, Chennai and, through their relatives, in Singapore and Malaysia, police said.
Superintendent of Police V. Varun Kumar said bank transactions showed that the finance firm transferred money received from investors to bank accounts in the name of film producers. “There are also conversations between them and the key accused about finances and deposits. We will conduct an inquiry with them.”
Interrogation of Neethimani and Anand revealed that the money was ploughed in film production and distribution, based on the idea given by friends in film industry. When the accused named the role of the three film producers, police tracked their conversation on mobile phones and WhatsApp messages and transactions through the banks.
Investigating officers said the three producers had been issued summons to appear at Ramanathapuram Bazaar police station between July 20 and 23.