Fraud chain breaks again

A private company based in Aluva allegedly collected `58 crore from several people

The Crime Branch sleuths have unearthed another major fraud in which a private company based in Aluva collected Rs 58 crore from several people across the state. Crime Branch, Economic Offences Wing, Kozhikode, has registered  a case against eight board of directors of the company who are absconding.

According to P A Valsan, Superintendent of Police, Crime Branch, and the investigation officer of the case, a company named Alga Royal Life Marketing had collected money from the people by promising to double the amount within a limited period.

“The case was detected three weeks ago after we received a complaint from a person who invested `1 lakh with the firm. The company had promised to return double the sum he had  invested in a year. But when he approached them after the prescribed time period the money including the invested money was not returned. We have registered a case and the investigation is on,” Valsan said.

The company, that started operation in 2010, used to conduct weekly and monthly draws and gave gifts and travel trips to take the investors into confidence.

The case has been registered against the board of directors: Praveen Gopalan of Kollam, Jaison John of Kozhikode, Nandakumar of  Kozhikode, Sajeev of Kannur, Gireesh of  Malappuram, Aneesh of Kannur, Abdul Samad of  Malappuram and Hamsa of Malappuram.

According to Crime Branch, the majority of the people invested money  were from northern districts of the state.

“Even though the company had branches all over Kerala, the majority of the investors were from Kozhikode and Malappuram. We have inquired with other investors who also came to know about the fraud after registering the case. We are collecting details about all the people who invested money with the company,” the officials said.

Valsan said that some of the directors have been tracked down.

 Besides, the Crime Branch will also come out with a lookout notice so that these people do not escape to other countries. 

Last month, the Crime Branch had exposed a similar fraud involving crores of rupees in which Sajeev M Nair, the Kerala head of a money chain company named Monavie, was arrested from Kochi.

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