Chit fund fraud: Union Minister alleges Kerala Police apathy

Union Minister of State for Finance and Shipping Pon Radhakrishnan has said the Kerala Police were showing apathy in lending assistance to the Tamil Nadu police in the investigation into the Nirmal Krishna chit fund fraud.  

THIRUVANANTHAPURAM: Union Minister of State for Finance and Shipping Pon Radhakrishnan has said the Kerala Police were showing apathy in lending assistance to the Tamil Nadu police in the investigation into the Nirmal Krishna chit fund fraud.  Radhakrishnan was speaking to mediapersons after collecting the complaints of 4,000-odd investors who were allegedly duped by the firm. 
“The probe being conducted by the Tamil Nadu police is progressing well. But the Kerala Police are showing apathy in involving in the probe,” Radhakrishnan said.

 He said he would convene a meeting soon with the Chief Ministers of Kerala and Tamil Nadu to speed up the probe to trace the absconding culprits. Radhakrishnan said the police should investigate the ‘black money’ deposits in the firm by certain influential persons. Radhakrishnan met the investors and heard their grievances at the Government High School at Palukal. He promised the investors that prompt action would be taken and the culprits brought to book soon. 

The Tamil Nadu Police are yet to arrest 12 people, including the key accused  Nirmalan Krishnan Nair. The police have so far arrested five persons, including three directors. Last week, the police had released sketches of the absconding culprits as there were reports that they were moving around in disguise. Two weeks ago, a high-level meeting of police officers from both the states  was held in Chennai to discuss the progress of probe. 

Earlier, state police chief Loknath Behera had written to his TN counterpart 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 SunilKumar Singh and IG Ajith Kumar Das represented Tamil Nadu. 

Nirmal Krishna chit fund company, a finance firm which functioned in Palukal in Tamil Nadu and close to Kerala border, had allegedly duped over 13,600 investors from Kerala and Tamil Nadu who had deposited over R500 crore under various investment schemes on the promise of good returns. 

Among them were several people hailing from Parassala, Vellarada and Kunnathukal areas bordering Tamil Nadu. The cheating 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.

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