CHENNAI: Two owners of a popular silk saree showroom in Kancheepuram have been arrested by the Kancheepuram District Crime Branch police in connection with an alleged Rs 20 crore fraud involving wholesale saree suppliers from Rajasthan, Chennai and Salem.

Krishnamoorthy (52) and Sathish (50), both residents of George Town in Chennai, jointly operated Murugan and Kalikambal Silks, located near Rangasamy Kulam in Kancheepuram.

According to police, the duo purchased silk sarees in bulk from suppliers across the country and sold them through their showroom. They allegedly bought sarees worth around Rs 18 crore from Mahendra Singh, a supplier from Rajasthan, and sarees worth Rs 2 crore from Suchithra of Chennai, but failed to settle the payments.

When the suppliers demanded their money, the showroom owners allegedly claimed that the sarees remained unsold and promised to clear the dues once the stock was sold. However, the suppliers later learnt that most of the sarees had already been sold, but the payments had not been made.

Following this, Mahendra and Suchithra lodged complaints with the Kancheepuram District Crime Branch, which registered a case and launched an investigation. As the investigation progressed, both accused allegedly went into hiding. A special police team was formed to trace them. Sathish was arrested a few days ago and remanded in judicial custody.

Continuing the search, police arrested Krishnamoorthy in Chennai on Thursday. He was produced before a court in Kancheepuram and remanded in judicial custody. The District Crime Branch police are continuing their investigation into the alleged fraud.