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Elderly man held on charges of chit fund fraud

Press Trust of India  |  Puducherry 

A 65-year old chit fund owner has been arrested for allegedly cheating around 1,000 investors of about Rs 4 crore, a police official said here Friday.

Thyagarajan was arrested Thursday from Vellore in Tamil Nadu from where he was operating the chit fund, senior superintendent of police(Crime and Investigation) Mahesh Kumar Barnwal told reporters here.

He had lured investors here also promising high rate of interest but neither paid it nor returned the deposit amount.

Around 1,000 people had deposited their money in the firm which evaded payment of the interest and the principal amount totalling Rs 4 crore, the police official said.

Police took action based on the complaint by a man from neighbouring Velrampet village that he had invested Rs 11.18 lakh with the firm but did not get his money back, he said.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Fri, April 05 2019. 17:05 IST