The Villupuram Economic Offences Wing - II on Tuesday arrested a 44-year-old man on charges of swindling money from the public through a chit fund. The accused has been identified as S. Siva alias Sivakumar, a native of Belakuppam near Tindivanam.
According to police, Sivakumar had swindled about ₹60 lakh from people by collecting money in the name of an unregistered chit fund. He had offered handsome returns for investing in his chit fund. The matter came to light when victims lodged a complaint with the EOW alleging that Sivakumar lured them to invest monthly deposits in the scheme.
After conducting a preliminary enquiry into the complaint, a case under Sections 406 (criminal breach of trust), 420 (cheating) of the Indian Penal Code and Section 4 (1) read with 76 of the Chit Fund Act was then registered.
The EOW police arrested Sivakumar. He was produced before a local court and remanded to custody.
