Chennai-based firm dupes 3,000 depositors in Andhra of Rs 3 crores

A Chennai-based company cheated as many as 3,000 people from Andhra to the tune of Rs 3crorese, on the pretext of issuing registered plots.

Published: 15th February 2017 05:35 AM  |   Last Updated: 15th February 2017 05:35 AM   |  A+A-

By Express News Service

VIJAYAWADA: croreIn yet another ponzi scam, a Chennai-based company cheated as many as 3,000 people from Andhra Pradesh to the tune of crores, on the pretext of issuing registered plots in Tamil Nadu when their deposits mature.

The victims approached the Machavaram police who registered cases under the Companies Act and cheating case on February 3. However, the issue came to light when the victims launched a protest in front of the Alwin Golden City Limited office in the city two days ago.

According to police, the company was floated as per the Companies Act but was working against the RBI guidelines by collecting deposits in the name of real estate business. They are planning to send a proposal letter to the CID to take up the case, for it became an inter-state issue now.

Alwin Golden City was started in Chennai in 2009 by Veeryanpapa Rajendran (52), who died in 2015. The company entered the market in Andhra Pradesh in 2013 and its agents collected multiple instalments offering registration of plots of 133 sq yards worth `1.5 lakh each to the depositors.

According to Alwin Manager (Vijayawada) G Anil Kumar, who is also a victim, said that the company had land assets of around 1,400 acres in Nanguneri near Tirunelveli of Tamil Nadu. Alwin carried the responsibility of developing those lands into layouts, which had only panchayat approval but not DTCP approval. The depositors are from Vijayawada, Rajahmundry, Vizag and several other places across Andhra Pradesh.

On November 2016, Alwin’s State office in Vijayawada was closed following which the victims approached the police, after their repeated efforts to meet the company promoters failed. They alleged that promoters abused them on being questioned about their registrations.

P Bujjamma, 46, from Sikhamani Centre in Vijayawada, deposited `6 lakh in two instalments since 2013, without the knowledge of her husband who is working as an accountant at a private company. According to Bujjamma, her account in the company matured and she is waiting for the registration of a plot in Chennai.

When around 43 depositors approached Managing Director Devipapa Rajendran, who took over the company after the death of her husband Veeryanpapa Rajendran, he did not respond properly.

Bujjamma also noted that the depositors went all the way to Chennai, 12 times, to meet Devipapa. “I took Rs 3 lakh on interest for my daughter’s marriage in November 2016. Now, my husband came to know about my deposit in Alwin. I am in deep trouble now. I am illiterate and could not realise that this company will cheat us,” Bujjamma said.

Machavaram police station Circle Inspector K Uma Maheswar Rao urged the public not to trust such companies. “The victims already approached the Tamil Nadu police and the issue is under their notice as well. Soon, we will send a special team to Chennai for investigation.” Another police officer said that the city police are writing a proposal letter to the CID requesting them to take up the case.

Advocate for Alwin, Ramesh Bala Subramaniam told Express that the company will get done with all registration processes with the depositors after some period. The actual problem is that the Tamil Nadu High Court had given an order to halt the sale of plots, which don’t have DTCP approval in 2015, even before Veeryanpapa died.

Later, the Tamil Nadu government became unstable and Alwin stopped registrations. Now, all the other real estate companies in Tamil Nadu are facing similar problems. The stakeholders of Alwin will initiate the registration process soon after the legal complications will get settled down, he assured.

There are seven directors in Alwin and Veeryanpapa Rajendran owned 75 percent stakes in the company, Ramesh Bala Subramaniam said.


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