CHENNAI: A special investigation team (SIT) of the State Economic Offences Wing (EOW) arrested a senior executive of ELFIN E-com, who was evading arrest for the past several months. The company allegedly defrauded public to the tune of several crores by floating unregulated multi-level marketing (MLM) schemes.

The arrested person, Raja alias Alagarsamy, was a managing director of the firm and has been absconding for a long time, evading arrest and violating bail conditions. He was apprehended by the SIT in July. He was produced before the Special Judge of Tamil Nadu Protection of Interest of Depositors (TNPID) Court, Madurai, and was lodged in the central prison, Madurai.

In February, the EOW arrested Ramesh Kumar, another managing director of Elfin E-com and Sparrow Global Trade, who, too, had been absconding. Police said his Tiruchy-based company, Elfin E-com, which had offices in Madurai, Sivaganga, Ramanathapuram, Tirupur, and Chennai, convinced the public to invest money promising exponential returns. For some customers, they even promised land, police said.

Kumar was apprehended on February 15 and was produced before the Special Judge of TNPID Court, Madurai, and remanded in judicial custody.

The SIT was formed on the orders of the State police chief, who was directed by the Madurai bench of the Madras High Court to look into the complaints against the firms.

The allied firms of the company, Sparrow Global Trade; JB Orient Tech Marketing India Pvt Ltd., Madurai; RM Wealth Creation Pvt Ltd., Coimbatore; and Infy Galaxy Marketing India Pvt Ltd., Chennai; and its affiliated firms, Aram Janaka Sangam Trust, Aram TV Channel, and Tamil Rajjiyam Newspaper have all been registered in more than 10 districts, including Tiruchy, Thanjavur, Ramanathapuram, Sivaganga, Virudhunagar, Perambalur, Tirupur, and Chennai.