Police have unearthed an investment scam in Kannur with the arrest of two directors of Kannur Urban Nidhi Limited. The financial firm allegedly lured more than 100 investors with the promise of higher returns.
District police chief Ajith Kumar said that the Kannur Town Police Station has received over 100 complaints against the company so far.
“We are in the preliminary stages of investigation. As the investigation unfolds, we will involve domain experts and higher authorities. A special team will also be formed,” he said. A team, headed by inspector Binu Mohan, is in charge of the investigation, he added.
Police have arrested Shaukat Ali and Gafur, both directors of the company, in connection with the investment scam.
Shaukat told the police that Anthony, director of ATM, a subsidiary of Kannur Urban Nidhi Limited, is behind the scam and he committed deposit fraud to the tune of several crores.
Depositors have alleged that the company promised them an interest of up to 12%. People who fell for their promise invested up to ₹34 lakh. The firm collected deposits ranging from ₹20,000 to ₹5 lakh, as well as fixed deposit from ₹1 lakh to ₹34 lakh, police said.
The company initially paid interests to the depositors. However, as people started making more investments, the company stopped paying them interest and even refused to return the deposit.
The police is trying to ascertain the extent of scam, the firm’s mode of operation, number of investors and other…
