KOCHI: Crime branch Ernakulam unit has taken over the probe against a bogus financial firm named Kerala Housing Finance Limited (KHFL) which allegedly swindled over Rs 100 crore from investors after promising them high interest rates. The crime branch has re-registered an FIR in which a family from Mamala in Ernakulam district lost around Rs 74 lakh after investing with the firm.
As per the re-registered FIR, the accused is Vijayalakshmi, a branch manager of the financial firm. Crime branch officials say, KHFL was owned by Adoor-native Unnikrishnan who was arrested by Kochi police after absconding for years for cheating the investors in 2020. Two other managers of the finance company were also arrested by police. The company had 29 branches in Kerala before it shut down its operations in 2018.
“The company was named KHFL to make investors believe that it is a government-affiliated firm. Many investors thought that it would be safe to invest in a government firm. The company collected over Rs 100 crore from the investors. A majority of investors are retired government officials who lost their life-long savings after being promised 14% interest for their deposits,” an officer said. The crime branch will probe the case in which 61-year-old K J Antony and his family lost Rs 74 lakh. He was approached by the company officials in 2014, promising high interest.
“He invested Rs 40 lakh which he had transferred to KHFL on eight occasions. His wife invested Rs 24 lakh through bank transfers on six occasions. His daughter invested Rs 10 lakh which was transferred to the firm on two occasions. For taking people into confidence to get more investments, the fraudulent company gave interest amounts on a monthly basis for a few years. After 2018, the investors stopped receiving any interest amount and their invested money,” he said. The case was first registered at Ambalamedu police station in Kochi in 2019. The crime branch has charged the company’s promoters with criminal breach of trust and cheating. Nearly 35 cases have been registered against the firm at various police stations in the state.