MADURAI: In one of several complaints of fraudulent finance companies coming to light in the district of late, around 150 of 260 underprivileged families residing in Mela Sakkudi village have allegedly fallen prey to a company named Green Vaisya Agrotech Limited Liability Partnership (LLP) that shut down few months ago.
The alleged fraud by the company also resulted in the suicide of one of its female employees in May.
The people of Mela Sakkudi, located around 17 km from here with an unpaved road connecting it to its parent village of Sakkudi, are predominantly seasonal migrants. Apart from a few small landholding farmers, others work as farm labourers during the crop season. During off-season, a majority of them migrate to work as labourers in brick kilns, while the rest try to find employment under the MGNREGS scheme.
In early 2013, the villagers were approached by a person called Seenivasan from Sakkudi as the representative of Green Vaisya Agrotech LLP, which had its offices in KK Nagar and Aathikulam in Madurai, promising about 40 per cent interest rate if they deposit Rs 1,000 for 30 months.
Typical of the modus operandi of such fly-by-night companies, Seenivasan convinced three people from Mela Sakkudi called Murugan, Chinna Irulan and Vellaiammal, who are familiar to the villagers, to work as the company’s agents for a handsome commission.
“We were told that if we pay Rs 30,000 in 30 months, we will get back Rs 42,000. As we had no savings, we decided to join even if it meant that we had to cut down on our already frugal expenses,” said M Pethammal (40) from the village.
N Murugan, who acted as one of the agents, said the company showed several documents claiming to be approvals from regulatory bodies to convince them. “Though we did not understand the documents, we trusted them. Significantly, they told us that depositing in government companies involve tedious procedures and with them it was hassle free,” Murugan added.
Even elderly people receiving Old Age Pension from the government deposited in a smaller scheme of Rs 500 per month. When the villagers paid up for 25 months, Sakkudi resident M Muthu Meenatchi (34), who worked as an assistant in the company, committed suicide on May 23, following pressure from some of her relatives who had deposited money in the company through her earlier. By then, the company had allegedly collected about Rs 40 lakh. An abetment of suicide case that was registered in Silaiman police station in this regard against Seenivasan and another person is under probe.
Following her suicide, the company closed down. “We spoke to Seenivasan and his relative called Dhanapal several times to get back the money. As we were threatened and ignored, we decided to approach the police,” Murugan said.
The villagers filed a petition with Madurai City police on Monday which is presently being inquired. Police said the company seemed to have cheated people from other villages as well.