The city crime branch of Tiruchi city police registered a case against five persons for duping investors with a promise to give better returns and swindled money to the tune of ₹26 lakh on Friday.
According to the police, R. Latha, 36, a native of Mela Kalkandarkottai, lodged a complaint with the City Crime Branch. In her complaint, she said Kannappan and Babu, her neighbours, approached her three years ago to invest one lakh rupee in a Salem-based chit fund firm owned by Balasubramaniyan and promised her to pay a monthly return of ₹ 18,000.
Believing this, Latha and 16 others invested a total of ₹26 lakh at the firm’s branch office at Cantonment in the city. The firm paid the investors ₹4.68 lakh as cumulative returns only for the first month and failed to pay the monthly returns and principal amount.
A case was booked against Balasubramaniyan, Niranjan, Kamal, the operators of the firm, and Kannappan and Babu under sections 120 b (Punishment of criminal conspiracy), 420 (Cheating and dishonestly inducing delivery of property) of the Indian Penal Code and under the provisions of the Prize Chits and Money Circulation Schemes (Banning) Act. Police said the case is under investigation.
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