Chit fund fraud: Probe team to issue look-out notices

The newly drawn sketch will be issued along with other pictures at railway stations, bus terminals, airports and other public places in TN and Kerala

Published: 15th October 2017 01:20 AM  |   Last Updated: 15th October 2017 08:04 AM   |  A+A-

By Express News Service

THIRUVANANTHAPURAM: The special investigation team of the Tamil Nadu police will issue look-out notices against the accused in the Nirmal Krishna chit fund fraud case, including the key accused Nirmalan Krishnan Nair, within two days. The police team has already released different sketches of Nair as he is suspected to have altered his appearance to evade arrest. The newly drawn sketch will also be issued along with other pictures at all railway stations, bus terminals, airports and other public places in Tamil Nadu and Kerala. 

Meanwhile, separate probe teams are at Bengaluru and Tirupathi after receiving information that the absconding persons had communicated with the arrested persons from these places.  Three members of the director board were arrested last week from Madurai. Upon interrogation, they did reveal they were in touch with the persons who are absconding. While checking the call details of the seized phones, the team came to know the absconding persons could be hiding in Bengaluru or Tirupathi.


According to the investigators, they are closing in on the culprits. Last week, a high-level meeting was held in Chennai between the Kerala and Tamil Nadu police to discuss the progress of the ongoing probe. 
Earlier, State Police Chief Loknath Behera wrote to his counterpart in Tamil Nadu to complete the probe as early as possible as the major chunk of investors is from Kerala. IGP (crimes) S Sreejith and SP Prasanthan Kani had attended the meeting representing the state while Economic Offenses Wing ADGP Sunil Kumar Singh and IG Ajith Kumar Das represented Tamil Nadu. 

So far, five persons have been arrested and the 13 persons, including the key accused, are still at large. Nirmal Krishna Chit Fund Company which functioned in Palukal in Tamil Nadu close to the Kerala border had allegedly duped over 13,600 investors from both the states who had deposited over Rs 500 crore under various investment schemes on the promise of good returns. 

Among them are several people hailing from Parassala, Vellarada and Kunnathukal areas bordering Tamil Nadu. The fraud came to light after the office failed to reopen after the Onam break. 
The firm had registered the mortgaged properties in the names of the arrested persons. 

The police said around 16 people went absconding, including the key accused. The firm had collected deposits to the tune of several crores from various persons - including businessmen and politicians - in Kanyakumari and Thiruvananthapuram districts. The company is said to have a strong presence in areas like the Chalai market here. It used to offer returns at the rate of Rs 1,400 per month for a deposit of Rs 1 lakh. Nirmal Krishna Nidhi Ltd also used to prompt the investors to convert the monthly payment from the deposit as chit payment so the amount could be retained by the firm.

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