Tamil Nadu

Scheming firms Law & order

Cheating gullible people with promise of high returns on their investment seems to have become the order of the day. Last week alone, a little over 200 people visited the office of Commissioner of Police to lodge complaints against a private finance company that vanished without a trace.

Though the police have been cautioning people repeatedly not to get carried away by ‘promising returns,’ many do not heed to the warnings. What is baffling is that those who had lost their money included some retired government officials and family members of policemen, according to a senior police officer.

The modus operandi of the self-styled “companies” is to quietly open an office in a busy locality first. After appointing young executives on a monthly salary, the ‘think tank’ would lay out the plan — like offering high returns for potential investors.

The moment the early birds get their returns, the news spreads like forest fire. Greedy public, not realising the trap, approach these companies voluntarily and deposit their money.

The latest to add to the sudden closure-list in Madurai is a multi-level marketing (MLM) company off Travellers’ Bungalow Road, police said.

Recently, a woman who received nearly Rs. 5 lakh as compensation from an insurance company towards motor accident claim following the death of her husband invested Rs. 4 lakh in a finance company after listening to her neighbour’s experience. Today, the woman is a victim of circumstances. She not only lost her husband, but also the money which came to her as compensation, a police officer said.

Apart from the so-called fast money making racket through MLM racket, the police are also receiving complaints of cheating by online business firms. Recently, a large number of people gathered at Madhichiyam police station to submit petitions against an online firm in the locality. After promising high returns, the key members of the organisation had escaped with a couple of crores. Though a marketing executive of the firm was arrested, others are absconding. There is no clue about their whereabouts, an officer said.

Commissioner of Police K. Nandabalan has appealed to the public to inform the police about new firms cropping up in their locality. He also urged the public to be on the guard and rely on safe investment channels than high returns.

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