Finance fraud to the tune of Rs 3 cr, two held in Salem

According to sources, the accused Kannan (34) and Johnson (71)-both hailing from Salem, had lured people into depositing money in their firm by promising high returns, like an assurance of a return of Rs 1.5 lakh over an investment of one lakh rupees upon maturity in ten months. Similarly, attractive returns were promised for investments starting from Rs 10,000. To gain the trust of gullible victims, the duo also gave pre-dated cheques to them for the promised amount.

The complainant, Muniammal (46) from Mullai Nagar, had then reportedly deposited Rs 15.85 lakh in the firm. She also convinced her friends and relatives to deposit Rs 85 lakh as the firm had promised Rs 3000 as commission for enrolling each person.

However, the firm failed to return the money on maturity as promised, and the cheques given by them bounced without cash in bank.

Based on Muniammal’s complaint, the Salem police registered a case and inquiries revealed that the duo had swindled more than three crore rupees from several people through the fly-by-night firm.

The police said the accused led a lavish life out of the money collected by duping investors.

“We have so far received complaints from about 20 people who lost their money investing in the firm. However, we anticipate more to lodge complaints in the coming days,” said a police officer.

Both Kannan and Johnson were arrested and further investigations are on to retrieve the money.