The Economic Offences Wing CID of the Tamil Nadu police has received complaints from over 2 lakh depositors against several non-banking firms
The Economic Offences Wing CID of the Tamil Nadu police has received complaints from over 2 lakh depositors against several non-banking firms
Over 2 lakh depositors lodged complaints against several non-banking firms accusing them of cheating them to the tune of approximately ₹8,624 crore in the last few months by luring them to invest in Ponzi schemes, said Economic Offences Wing (EOW) CID of Tamil Nadu Police.
A few financial firms were launched across the State in the guise of investing in stock markets, online trading and real estate business. They received investments from the public promising high returns.
Aarudhra Gold Trading Pvt. Ltd., LNS International Financial Services and Elfine E-Com Pvt. Ltd. are prominent among them and promised interests from 10% to 25% a month to the investors.
T. Jayachandran, Superintendent of Police (SP), EOW CID Police, said these firms had appointed agents and held meetings with depositors at luxury hotels. The directors of firms made false promises.
Without any proper investment scheme, they made monthly payments to initial investors out of the money received as deposits. “It is generally a Ponzi scheme which is an investment fraud that pays existing investors with funds collected from new investors. These firms did not follow any RBI guidelines. However, they failed to pay returns…
