KOCHI: The probe against a Kochi-based hostel chain which swindled money from investors has revealed a major scam, with the police in touch with more victims. The Elamakkara police, which registered two cases against Kasaragod native Sayid M, proprietor of the hostel Sleep Easy in Edappally, found that the accused cheated investors of crores of rupees.
It was in November 2022 that Sayid started the hostel business in Kochi. Sleep Easy later took over several hostels in the city, providing hostel rooms for rent on daily and monthly bases.
“A preliminary probe has revealed that the firm is running around 50 hostels in and around Kochi. Sayid duped people by seeking investment in his highly profitable business. He promised a 50% share of the profits and offered investors key posts in the company.
The profit-share was supposed to be paid every month. However, the profit was never paid. Instead, the investors were told that their profit has been deposited with a chit fund scheme,” said Elamakkara SHO Harikrishnan B.
As the company collected Rs 20 lakh to Rs 1 crore from investors, and with no profit received, the investors started approaching the company’s office in Edappally.
Soon, Sayid absconded. “We registered cases following complaints from two persons who invested Rs 61 lakh and Rs 20 lakh respectively. Another investor, who lost Rs 80 lakh, has filed a complaint. Four other investors have also contacted us. We will register cases after getting their complaints. It looks like a major scam with people having invested huge amounts with the firm,” the officer said.
Police have launched a manhunt for Sayid. “The investigation has not revealed his involvement in criminal cases before. Further probewill unveil the whole scam,” he said.