The State Crime Branch is set to take over the probe into an alleged investment fraud running into crores of rupees, ₹8.50 crore at last count, which was reported in Koothattukulam last month.
The Koothattukulam police have arrested a father-son duo in connection the alleged fraud. The arrested are N.A. Issak and his son N.I. Abraham, who own a private financial firm. They are in judicial custody now.
“We have so far received 51 petitions based on which 11 first information reports have been filed. The accused collectively duped investors to the tune of ₹8.50 crore. They had been collecting money from investors for years by promising high interest rate in the rage of 12% to 14%,” said sources in the Koothattukulam police.
The firm with its head office in Kochi has been operating since 1996. Apart from the one in Koothattukulam, it has branches in Angamaly and Uzhavoor. More complaints are being reported at these places as well indicating that more cases may be registered in the coming days. According to complaints lodged with the Koothattukulam police, the investor losses run into lakhs and crores. In one case, an investor had lost up to ₹1 crore.
The Koothattukulam police had registered the first case on February 21 on a complaint lodged by a four-member family. According to the petitioners, they had invested ₹78 lakh since 2001 after being promised an interest of 12.50%, and the firm now owes them ₹90 lakh, including an interest of ₹12 lakh.
However, the firm failed to pay up when the family demanded the deposit along with interest for their daughter’s marriage following which a complaint was registered.
The police have booked the accused under IPC Sections 406 (breach of trust), 420 (cheating and dishonestly inducing delivery of property), and 34 (the acts done by several persons in furtherance of common intention).
“As of now, we don’t see the involvement of more people other than the father-son duo. Whether the accused had deliberately cheated investors, or business failure led to the default remains to be investigated,” said Koothattukulam police sources.
