KOCHI: The Organised Crime Wing (OCW) of Crime Branch, Ernakulam, has arrested two directors of a Mumbai-based financial company which duped people of Kerala of more than Rs 200 crore. The duo was arrested from Mumbai a couple of days ago and produced before the Chalakudy Magistrate Court on Thursday.
Joseph Raphel, 51, of Gorai, West Mumbai, and Vilas Sarkar, 42, of Malad, East Mumbai are the arrested. The two were the directors of the company Phenomenal which collected more than Rs 200 crore from people hailing from various parts of Kerala on the promise their investments would be doubled in nine years.
Manikandan M V, Detective Inspector, said Phenomenal functioned across Kerala for 20 years till 2014. “Besides promising people that their money would be doubled people’s money, the company also assured medical insurance and financial assistance to investors. However, after 2014, the company was shut down and the promised amount to the investors was not given. Its offices in other parts of the country were also shut down. The accused persons have to pay around `2000 crore to investors,” he said.
After the business collapse, the duo went in hiding in Mumbai. The main office of the company in Kerala was in located at Chalakudy.
More than 50 cases were registered against them in various police stations in Kerala, with a majority of the cases registered in the Chalakudy police station. A few years ago, the investigation was handed over Organised Crime Wing of Crime Branch.
The arrest
Manikandan said following a tip-off about the hideout of the accused, the probe team was stationed in Mumbai. “Later, they were identified and arrested. They have been remanded. We will seek their custody for interrogation,” he said.