VELLORE / RANIPET: The Enforcement Directorate (ED) conducted raids at the residences of the relatives of one of the directors of IFS Financial Company, Janardhanan, on Thursday.
Officials searched the houses of Janardhanan's grandfather Bhakthavachalam in Sathuvachari and his mother-in-law Vasantakumari's house in Katpadi Sengottai. ED also conducted raids at the houses of agents Kamalakannan from Nemili in Ranipet and Kumararaja from Arakkonam. Officials searched the house of the owner of MN Jewelry in Velapadi for his involvement in bank transactions. Official sources said crucial documents have been seized during the raids.
IFS Financial Company, headquartered in Katpadi, had enticed investors with lucrative interest rates of up to 5% a month. The company appointed agents across various districts, including Vellore, Ranipet, Kancheepuram and Chengalpattu, to attract investments.
Preliminary estimates suggest that several individuals invested a significant amount of money in the company. However, in the wake of complaints from affected investors regarding non-repayment of interest and principal amount within the agreed timeframe, the Economic Offences Division launched an investigation.
According to the charge sheet, the company allegedly committed fraud amounting to Rs 57 crore in Vellore and Ranipet districts. As a result, the Chennai Economic Offences Division filed a case against managing directors Lakshminarayanan, Janardhanan, Vedhanarayanan, Mohanbabu, and others associated with the firm.
Subsequently, four of the accused fled to foreign countries and have Red Corner notices issued against them.
Meanwhile, police arrested six agents affiliated with the financial institution and seized their vehicles and properties. The ongoing investigation has led IFS officials to file a chargesheet against 13 individuals.