Chit fund promoters scoot after investors cry foul

The police sealed the office of Mullackal Chit Fund located near Chittur College on Wednesday following complaints by investors that they have been defrauded of lakhs of rupees.

Published: 17th October 2013 11:03 AM  |   Last Updated: 17th October 2013 11:03 AM   |  A+A-

The police sealed the office of Mullackal Chit Fund located near Chittur College on Wednesday following complaints by investors that they have been defrauded of lakhs of rupees.

The promoters of the Chit Fund company, Antony Koshy and Shiran Antony of Tiruvalla, have gone into hiding. One of the investors, who approached the company for repayment of Rs 40,000 was told to come after the Puja holidays. When he arrived at the office on Tuesday, he found the office closed.

The chit fund promoters could also not be contacted as their mobile phones were switched off. Sub Inspector of Chittur police station Mohandas, who is investigating the case, said that in the Chittur branch alone, 314 complaints by investors, amounting to a fraud of nearly Rs 40 lakh, were filed on Wednesday. The chit fund company also had branches in Kollengode and Nenmara.

The locals said that the chit fund firm used to employ local women for daily collections. It has been functioning in Chittur for the last three years. There were also youths who were deployed to collect funds and were even provided motorcycles for the purpose.

It is felt that if the total claims of investors are assessed, the amount could run up to several crores in all units.

The chit fund company had its head office in Tiruvalla, the police said.

In the morning, tension prevailed in Chittur area as the public threw stones at the closed office of the chit fund company.

Later, the police arrived, broke open the lock and seized all the documents. The office was then sealed by the police.

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