3 TN finance firms cheated 2L depositors of Rs 8,625 cr: EOW

CHENNAI: Three financial institutions in Tamil Nadu which are under the scanner of Economic Offences Wing (EOW) have cheated public to the tune of Rs 8,625 crores by promising exorbitant interest rates on their deposits. Look out notices have been issued to ensure that the directors of the company do not flee the country, EOW officials said.

The companies under the police scanner are Aarudhra Gold trading private limited, Elpin-e-com Private Limited and Vellore based LNS International Financial Service. Two persons of Aarudhra and 16 persons linked to Elfin have been arrested so far by the police.

On Tuesday, a 40-year-old agent of LNS IFS killed self at his house in Vellore, leaving behind a suicide note asking investigators to retrieve the depositors’ hard-earned money.

EOW Superintendent of Police (SP), Jayachandran on Wednesday said that at least two lakh people have made deposits in these three companies.

“These financial institutions operate like a ponzi scheme. Depositors are lured in through events held at luxury hotels. They initially pay a section of investors and use them to bring in more investors,” the SP said in a media gathering.

Aarudhra has collected Rs 2,124 crores as deposit from more than 93,000 investors. Of this, about Rs 85 crores have been recovered. Elfin-e-com has nearly 7,000 investors and has collected more than Rs. 500 crore as deposits, while Vellore based LNS International Financial Service has more than one lakh investors and has collected nearly Rs 6,000 crore as deposits.

Cases were registered under sections of IPC including cheating (420) and Banning of Unregulated Deposit Schemes Act, 2019; Tamil Nadu Protection of Interests of Depositors (In Financial Establishments) Act among others.