KOCHI: The investment fraud involving Athira Gold and Silks based in Kochi is snowballing into a major financial scam, with police registering 10 fresh cases in recent days. With more victims coming forward, the investigation is expected to be handed over to the crime branch for further probe.
The proprietors of Athira Gold and Silks - R J Antony, Joseph, Johnson, and Joby - were arrested by Ernakulam Central Police in February this year. The company, which operated a prominent showroom near the High Court Junction, had been running gold investment and savings schemes for several years, attracting hundreds of investors.
“The firm accepted investments by promising returns of up to 12 per cent interest. Many were lured by the attractive offers. There was also a gold scheme where customers were promised gold ornaments in the future at current market rates. Investments were made in the form of both cash and gold,” said an officer at the Ernakulam Central Police Station.
Since January, however, the promised returns stopped, triggering panic among investors. “Most people had deposited money for their children’s weddings or invested their retirement benefits. We have received over 500 complaints so far, and more are expected,” the officer added.
The company had branches in coastal areas of the district including Vypeen, North Paravoor, and Cherai. Due to financial trouble, banks initiated recovery proceedings due to non-repayment of loans. The Ernakulam Central Police alone have registered over 20 cases, with 10 of them filed in the past two days.
“There appears to be an ongoing mediation effort between the firm and some investors. But due to delays, many have lost patience and formally filed police complaints. The company is estimated to owe several crores of rupees,” the officer said.
With the rising number of cases, the Ernakulam Central Police have recommended that the crime branch take over the investigation. “Given the volume of complaints and the amount lost, it is becoming difficult for local police to handle all the cases. The crime branch will likely take over the probe once additional FIRs are filed. They will also handle cases registered at other police stations in the district,” the officer added.