Two held for financial fraud

MADURAI: The economic offences wing (EOW) sleuths have detected a financial fraud to the tune of several lakh by two private companies that duped gullible investors in Madurai.
Two of the fraudsters running the companies were arrested on August 19 and 20 while the hunt is on for two more men who are on the run. An EOW officer said that only after the company was closed in the wake of the arrests, depositors have realised that they have been duped. "Though they were not getting the promised returns all these days, they were waiting with hope. But, now they started lodging complaints. So far we have received about 25 complaints," said an EOW officer.
Police said that A Kalil Rahman and P Sivaraj had started two companies named Rex Life Care Solution and Relica Agro Farms and Estate Private Limited in Madurai in 2011 and the office as functioning at K K Nagar. They had promised multiple returns for the investments in their schemes of which one was providing an interest of 12% for the deposits made.
A number of depositors had invested money ranging from Rs 50,000 to Rs 5 lakh in the two companies since 2011. They failed to receive the promised returns and started pressurising Rahman and Sivaraj to part with their money, but were pacified with more promises.
However, Alis Jancy Rani, who had deposited Rs 3.85 lakh lodged a complaint with the police recently accusing the two of duping her. "We registered a case under several counts including cheating and Tamil Nadu Tamil Nadu Protection of Investors and Depositors Act (TNPID) on August 19," said the EOW officer.
Subsequently, Kalil
Rahman and his associate Babu was arrested. The two were produced in a court and remanded in judicial custody. Police have launched a hunt for Sivaraj and another associate Vellaichamy.