KOCHI: An owner of a prominent budget-friendly hostel chain in Kochi is under investigation for allegedly duping several people of crores of rupees after luring them with false promises of huge profits and making them invest in opening “new branches”.
The Elamakkara police have lodged multiple cheating cases against Sayid M K, 50, an active partner of the hostel chain having separate stay facilities for women and men, and four of his staff. The native of Thekke Trikaripur in Kasaragod is absconding.
“We’ve received at least three complaints as of now and lodged a cheating case against Sayid, the active partner of the hostel chain. Preliminary probe points towards fraud involving crores of rupees as he made the complainants invest various sums of money at various occasions from November 12, 2022.
Further investigation is on,” said Harikrishnan B, Elamakkara SHO. One of the complainants, Muhammed Salman S, claimed he and his relatives invested over Rs 80 lakh with the accused who promised huge returns. Similarly, complainants Harris P M and Abdul Samad alleged loss of Rs 61 lakh and Rs 20 lakh, respectively.
“Harris was a partner while Sayid was the active partner. The latter made Harris invest money promising 50% of returns. However, when the complainant failed to get the ‘profit share’ for two months, he tried to contact Sayid, who had been out of reach for the past several months. He lodged a complaint on December 10,” the officer said.
As the fraud came to light, the cops received two more complaints. The Elamakkara police have registered cases under IPC Section 420 (cheating and dishonestly inducing someone to deliver property) , Section 34 (multiple people committing a criminal act in furtherance of a common interaction), and Bharatiya Nyaya Sanhita Section 318 (4) (cheating and fraudulently inducing someone to deliver property).
The police have also registered a case against Harris and a few other investors on a complaint filed by the staff of the hostel chain headquartered in Edappally alleging they “trespassed” into the institution and tried to interfere in its day-to-day operation.