THOOTHUKUDI: The Economic Offences Wing (EOW) police have arrested four more people in connection with the alleged Rs 29-crore fraud at the Kurumbur Primary Agricultural Cooperative Credit Society. The police are also taking steps to recover gold jewellery allegedly misappropriated from the society and re-pledged in the names of other people.
The four arrested are Muthusamy, 47, of Madathuvilai in Arumuganeri; his wife; Krupa, 44, who worked at the house of the society's secretary, Devaraj; Murugan, 62, an electrician from Shanmugapuram in Veerapandianpattinam; and Isakkithurai, 33, of South Manadu in Tiruchendur.
The arrests followed a re-investigation ordered by the court into the fraud, which allegedly took place between May 22, 2019, and August 24, 2021. The investigation found that gold jewellery misappropriated from the society had been re-pledged at various banks and cooperative societies in the names of more than 10 people, including Devaraj's car driver, domestic workers and friends. The institutions named in the investigation include those in Sethukuvaithan, Udankudi and Madhavakurichi.
The re-investigation is being conducted under the supervision of Superintendent of Police Saravanakumar and led by Deputy Superintendent of Police Jeyapal Barnabas, following petitions filed by victims seeking the return of their pledged jewellery.
The alleged fraud involved the diversion of bank deposits and the re-pledging of jewellery at other banks in the names of different people, amounting to Rs 29 crore, during the period mentioned.
Based on a complaint lodged by Valarmathi, Deputy Registrar of Cooperative Societies, Tiruchendur division, the EOW police had earlier registered a case and arrested society secretary Devaraj, assistant secretary Jhansichandrakanta Gnanabai, president Murugesapandian, clerk Sivagami and jewellery appraiser Arumuganainar.
The victims subsequently approached the Madurai Bench of the Madras High Court, which directed the Deputy Registrar of Cooperative Societies to immediately refund 30 per cent of their deposits. Money has since been returned to several victims.