A 72-year-old man, along with his grandson, were arrested on charges of cheating over 500 people of Rs 9 crore in the name of chit funds, police said today.
Velusamy of Bodipalayam on the city outskirts, was running a chit fund company by name Thulasiyammal Chits (P) Ltd since 2008, with wife, son, daughter-in-law, daughter, son-in-law and grandson as directors, they said.
About 500 persons in nearby areas had joined the chit fund and deposited Rs 9 crore, police said.
Just a week ago they came to know that the family had absconded from the area and lodged a complaint.
Investigations led to the arrest of Velusamy and his grandson late last night, they said.
They were produced before 'The Tamil Nadu Protection of Interests of Depositors (In Financial Establishments) Act 1997' (TANPID) court which remanded them to judicial custody.
Preliminary investigations revealed that the family purchased apartments, agricultural land, house sites and gold ornaments with the chit money, they said.
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