Finance company owner arrested in Coimbatore for defrauding over Rs. 50 crore through ponzi schemes
Coimbatore: Rituvarnan, 37, from Sivasamy Layout in Peelamedu, has been running a financial institution called Sarva iTech Solutionz at Udayampalayam in Coimbatore since last March. He announced attractive plans that would pay 2.5% interest per day or double the investment if Rs. 1 lakh is invested. Relying on this scheme, some people invested in his financial institution. In the beginning, Rituvarnan paid the appropriate interest to the investors as promised. He also asked the investors to talk to their relatives and friends and make them invest in the company. He promised they will be paid appropriate commissions for references.
As the investors received the interest and double payments regularly, they let others know about it and more than 600 people including women and the elderly invested more than Rs. 25 crore. At one point, when there were no returns from the company, the investors visited the office and questioned Rituvarnan who cited COVID as the reason for nonpayment of interest and other dues.
Some customers who doubted his intentions asked for refunds. He gave up to Rs 50 lakh to the people who questioned him, but did not make refunds to others. Meanwhile, all the investors started urging him to repay their full investment. Due to this, Rituvarnan switched his mobile off. This shocked the investors who lodged a complaint with the Coimbatore Economic Crimes Division. Following this, an investigation led by DSP Rajendran revealed that around 400 people have been defrauded to the tune of about Rs. 50 crore. Rituvarnan was hence arrested and jailed by the police.
Investors said that they invested the money saved for their children's wedding and education, relying on the attractive plans. A few have also invested their entire pension money. They said their livelihoods have become questionable and urged that the police should take appropriate action and help them get their money back.
As the investors received the interest and double payments regularly, they let others know about it and more than 600 people including women and the elderly invested more than Rs. 25 crore. At one point, when there were no returns from the company, the investors visited the office and questioned Rituvarnan who cited COVID as the reason for nonpayment of interest and other dues.
Some customers who doubted his intentions asked for refunds. He gave up to Rs 50 lakh to the people who questioned him, but did not make refunds to others. Meanwhile, all the investors started urging him to repay their full investment. Due to this, Rituvarnan switched his mobile off. This shocked the investors who lodged a complaint with the Coimbatore Economic Crimes Division. Following this, an investigation led by DSP Rajendran revealed that around 400 people have been defrauded to the tune of about Rs. 50 crore. Rituvarnan was hence arrested and jailed by the police.
Investors said that they invested the money saved for their children's wedding and education, relying on the attractive plans. A few have also invested their entire pension money. They said their livelihoods have become questionable and urged that the police should take appropriate action and help them get their money back.