CHENNAI: Economic offenders using YouTube interviews to rebrand themselves became a niche in 2025. In an interview to a YouTube channel with 6 lakh subscribers that aired in April 2025, SHS Swaminatha pontificated the various philanthropic acts carried out by his trust, ‘Sri Kamatchi Karuna Illam’.
“He will earn Rs 500 crore more using this interview itself’, ‘An interview without knowing about the subject’, ‘**** Fraud’ were some of the comments posted under the interview.
Five months later, the CB-CID (Crime Branch-Criminal Investigation Department) arrested Swaminatha, his acolytes and associates. A coordinated search operation was conducted at 43 locations across 20 districts in TN and in four locations outside the State on September 12, leading to the arrest of 30 suspects, including the five key conspirators – SHS Swaminatha from Chennai, ‘Katpadi’ Jayaraj, AC Ravichandran of Kudumiyanmalai, Gnanaprakasam of Manapparai and Daisy Rani of Dindigul.
“Based on reliable information, it was revealed that several fraud gangs across TN were operating bogus trusts without proper registration, fabricating documents in the name of RBI (Reserve Bank of India) and deceiving people by promising crores of rupees from foreign sources, through the sale of iridium,” read an official statement from Tamil Nadu Police.
In the subsequent months, CB-CID arrested various agents across TN who collected money from the gullible and the greedy, promising exponential returns on their investment.
At the time of his arrest, Swaminatha and his agents had defrauded 1,006 gullible persons of Rs 13.3 cror. His group had told investors that they had sold large quantities of the metal abroad and are owed Rs 2 lakh crore by the RBI
Unlike the modern cyber crimes in which fraudsters seem to come up with a new modus operandi every fortnight, the ‘Iridium scam’ has been around for decades and is even represented in Tamil Nadu’s favourite leisure activity – cinema.
Yet, the scam still attracts victims. The 2014-film, ‘Sathuranga Vettai’ directed by H Vinoth features a conman, Gandhi, who goes around the State pulling off several scams including the iridium one.
“This is probably the first time a coordinated effort was undertaken to round up the syndicate. Fraudsters were arrested in huge numbers, which attracted wide attention in the media and social media. Previously, a mid or low level agent or only one mastermind would be arrested and people generally forget and on their release on bail, they shift towns and begin operations. We hope with these arrests, there is also awareness created among the public,” said an officer with CB-CID.
The ‘Iridium scam’ is also known as the rice pulling scam, in which the targets were mostly well-off people in distress. The advent of instant messaging platforms like WhatsApp has helped the fraudsters to cast a wider net and even the daily wager is now a victim.
“For the scam to succeed, one has to select potential targets, do demonstrations showing rice grains getting attracted to a temple kalasam supposedly made of iridium (a trick) and then lure the potential investors, promising that worshipping the metal can solve their troubles. Usually, the modus operandi is to claim that these rice pulling vessels are those hit by lightning which transforms a normal metal to acquire such properties and superstitious businessmen usually fall for it,” said a police officer. “In the present day, you just have to send a forged letter from the RBI or other government agencies like DRDO and others on WhatsApp, followed by a video message.”
The syndicate systematically targets retired government officials, especially teachers and policemen to become part of their group to lend credibility to their operation. Since the retired government staff have a standing, especially in villages, the public too believe their words- A senior officer, CB-CID
According to CB-CID, SHS Swaminatha and his associates created a WhatsApp group and uploaded documents like RBI letters, Income Tax depart seals, letters from Bhabha Atomic Research Centre (BARC) regularly to induce the victims to part with their money.
“’Pay Rs 1 lakh and get Rs 1 crore after a year’ was their selling line,” said a CB-CID official.
At the time of his arrest, Swaminatha and his agents had defrauded 1,006 gullible persons of Rs 13.3 crore, CB-CID said. His group had told investors that they had sold large quantities of the metal abroad and are owed Rs 2 lakh crore by the RBI.
They received money via their trust (Sri Kamatchi Karunai Illam) using different pretexts such as ‘super tax’, gifts to government officials. “I was told that we would get the money with Z+ security,” according to a victim, who invested Rs 17 lakh with Swaminatha’s group over the last six years.
One of the accused, Vaishnavadevi, an agent of Swaminatha, collected more than Rs 1 crore from women SHGs and public in Virudhunagar.
While Swaminatha used his religious charitable trust as a front, another accused, ‘Kudumiyanmalai’ Ravichandran used to bring yesteryear actresses and TV personalities to his village in Pudukkottai and put up a show as if he was well-connected with the celebrities, to convince gullible villagers.
CB-CID sources said that Ravichandran has been operating the con in Pudukkottai for at least 10 years and estimated to have collected over Rs 30 crore.
According to a victim, a similar charlatan is operating in Ramanathapuram, who is misusing the name of the late former President APJ Abdul Kalam. “He has been running a trust and collecting money from thousands of people. He has even cheated daily wagers,” said the victim.
“Some of the masterminds that CB-CID arrested have been operating for several years. I’ve been campaigning against such frauds for several years through social media and shared information with the police too,” said V Murugeshan, a whistleblower.
According to Murugeshan, some of the arrested persons are already out on bail and have resumed their act. “It is unfortunate that there are people who still believe that these guys can bring money through RBI. I’ve known of instances where people from well-off families have become paupers, believing them,” Murugeshan said.
A CB-CID officer said that the syndicate systematically targets retired government officials, especially teachers and policemen to become part of their group to lend credibility to their operation. “Since the retired government staff have a standing, especially in villages, the public too believe their words,” the officer said. CB-CID officials said that the arrests will continue in 2026 too.