The victims lodged a complaint at the Erode SP office as the businessman had embezzled up to Rs 10 crore in chit funds. The case was transferred to the District Crime Branch. Businessman Babu, who was hiding at the time, was arrested by the Erode North police, produced in court and is lodged in Erode jail.
Coimbatore: Police have arrested a businessman who was involved in a Rs 10 crore scam in chit funds. The businessman who is accused of swindling Rs 10 crore by chit funds was arrested by the police yesterday. Babu, a businessman from Soolai CS Nagar in Erode ran small businesses and was into soap manufacturing. He also was involved in chit funds business on Ashokapuram Main Road, Erode. He used to collect chit funds ranging from Rs 50,000 to Rs 10 lakh in the name of daily collection and weekly collection. More than 250 people were his clients.
Babu went into hiding with his family after closing the company last month after he was unable to pay the beneficiaries for a month. The victims lodged a complaint at the Erode SP office as he had embezzled up to Rs 10 crore.
The case was transferred to the District Crime Branch. Businessman Babu, who was hiding at the time, was arrested by the Erode North police, produced in court and is lodged in the Erode jail.
Babu went into hiding with his family after closing the company last month after he was unable to pay the beneficiaries for a month. The victims lodged a complaint at the Erode SP office as he had embezzled up to Rs 10 crore.
The case was transferred to the District Crime Branch. Businessman Babu, who was hiding at the time, was arrested by the Erode North police, produced in court and is lodged in the Erode jail.