A chit fund operator, who is accused of defrauding depositors to the tune of Rs 4.03 lakh, has been convicted to undergo 10 years rigorous imprisonment by a court here. According to a complaint registered by the Economic Offences Wing II police, a chit fund, operated in the name of Siva Sakthi Chits Pongal Fund, at Thottappanayakkanur near Usilampatti collected daily chits but failed to repay the sum at maturity to the tune of Rs. 4, 02, 155 to 35 depositors. Based on a complaint filed by Muthumani of Thottappanayakkanur on March 1, 2008, the case was registered against four persons – Shankar, Kanimuthu, Deivam and Chinnasamy.
The Special Judge for Tamil Nadu Protection of Interests of Depositors (In Financial Establishments) (TNPID) Act, P. Murugan, on Friday convicted Shankar and sentenced him to undergo rigorous imprisonment for 10 years and also pay a fine of Rs. One lakh. The other three accused were acquitted. According to a press release from the Economic Offences Wing II police, the accused was sentenced to undergo three more years of RI, if he failed to pay the fine.
Keywords: chit fund fraud