Date:21/05/2008 URL: http://www.thehindu.com/2008/05/21/stories/2008052159120400.htm

Tamil Nadu - Chennai

Three arrested for fraud

Special Correspondent

They had collected Rs.60 lakh from 13,000 persons

Photo: K.V.Srinivasan

It’s out: Billboards with details of the ‘investment’ scheme of the company, which were seized by the police in Chennai on Tuesday. —

CHENNAI: The Central Crime Branch police arrested three persons on charges of cheating several persons to the tune of over Rs.60 lakh under the Prize, Chit, Money Circulation Schemes (Banning) Act here on Tuesday.

Following a complaint, Commissioner of Police G. Nanchil Kumaran directed the CCB police to investigate the case.

Inquiries revealed that three persons identified as Baskar Rao (50) of Jaya Nagar Main Road, Tiruvallur district, and his accomplices Mohammed Javid (52) of Vellore and Mohammed Safiullah Sheriff (62) of North Arcot district had set up a firm “GGPRO INDIA” at Aminjikarai, Poonamallee High Road, last year.

They solicited the public to invest amounts ranging from Rs.750 to Rs.2,500 as a one-time payment, on which they promised returns as high as Rs.50 lakh over a specific period of time, for five years and more.

Assistant Commissioner of Police (Bank Frauds Wing) M. Paneerselvam said that Baskar Rao, a B.Com. degree holder, had set up branches in Tiruvallur and Vellore districts. So far, about 13,000 people had joined the schemes by paying Rs. 750, Rs. 1,250 and Rs. 2,500.

The pamphlets of the firm, printed in Tamil and English, seized from the premises claimed that it is not a multi-level-marketing venture and there was no registration or service charges.

Based on the confessions of the arrested, the police seized documents of 31 acres of vacant plots in Tuticorin district purchased by the accused.

They also seized Rs.3.5 lakh cash deposited in a bank. The accused had promised to register 30 square feet of land for each investor who paid cash and joined as members in the scheme.

The billboards and banners also claimed that the members need not introduce any one in the scheme as in a multi-level-marketing scheme. The company’s website promised many ‘innovative’ schemes.

Mr. Kumaran appealed to the public to check before making investments in a company.

After registering cases, the three accused were produced before a city court.