CHENNAI: The Entrustment Document Fraud (EDF) wing of the Central Crime Branch in Chennai arrested P Thangappan (68) on Wednesday for his alleged role in a Rs 7.32-crore investment scam.
Thangappan, honorary general secretary of Indo-Russian Chambers of Commerce and Industries Limited, had allegedly appointed C Arunraj (38) as honorary deputy chairman using fake documents. Exploiting this title, Arunraj and his associates allegedly deceived a Tiruchy-based businessman, promising a Rs 2,000 crore investment from the Russian government.
The businessman had transferred Rs 7.32 crore to their accounts between March and October. The accused used fake Russian government insignia, flags and a fabricated website to deceive the victim.
Investigations revealed that they had also leased parts of the Indo-Russian Trade and Industry Chamber’s premises in the Russian Cultural Centre without the Russian Consulate’s knowledge, collecting nearly Rs 4 crore in cash and Rs 1.58 crore through bank transactions.
Others, including Arunraj, M Kumaran (43), S Nagendran (39), Madhankumar, retired VAO Dharman, Rupa, Ziaudeen, Vignesh Kumar, tahsildar (Tasmac) Viswanathan and Sasikumar, were arrested in November last year. Police also recovered 476 sovereigns, 400 kg of silver, a sum of Rs 14.5 lakh and 11 luxury cars.
The EDF has also booked another case against Arunraj and Rupa after a Tiruppur businessman alleged a similar scam of Rs 4.4 crore. Thangappan was remanded in judicial custody on Wednesday.