CHENNAI: Police from the Pazhavanthangal station have arrested three family members for allegedly cheating 19 people of approximately Rs 37.87 lakh through a fraudulent monthly chit fund scheme.

The accused have been identified as Dhanalakshmi (63), her son Balaji (40), and his wife Lavanya (31). The investigation was launched based on a complaint filed by Srinivasan and 18 others from BV Nagar, 4th Street in Pazhavanthangal.

According to the complaint, Dhanalakshmi had been operating the chit fund scheme for about a decade from her residence in the same locality. She was allegedly assisted by her son, daughter-in-law, and two daughters in collecting funds. The complainants stated that they had enrolled in monthly lotteries of Rs 5 lakh, Rs 2 lakh, and Rs 1 lakh, contributing money regularly from February 2024 until March 2025.

After collecting a total sum of Rs 37.87 lakh from the group, Dhanalakshmi abruptly vacated her house in April 2025 and went into hiding, prompting the victims to approach the police.

Following intensive inquiries, a special police team led by the Inspector of Pazhavanthangal station tracked down the accused, who were hiding in the Koyambedu area. The trio was arrested on January 14, 2026.

After interrogation, all three arrested individuals were produced before a court. Following the court's order, they have been remanded to judicial custody.

Police are continuing their search for two other daughters of Dhanalakshmi, who are also suspected to be involved in the fraud and are currently at large.