‘Investors deposited over Rs. 7 cr. in company’
The Economic Offences Wing (EOW) on Friday night arrested three persons of a private company that promoted contract emu farming on the charge of cheating.
The police said a few persons started TVS Emu Farms at DG Puthur near Sathyamangalam and offered staggering returns for the investments made in the contract farming of emu.
Lured by the huge returns, more than 1,000 persons from Erode, Tirupur, Coimbatore and a few other districts invested their hard earned money in the ponzi schemes of the company.
When the emu bubble burst in the first week of August last year, the company closed its office and its promoters vanished. It was said that the investors had deposited more than Rs. 7 crore in the company. The EOW police had a difficult time in tracking the promoters as they had given bogus addresses at the banks and telecom companies. A special team was formed to nab the promoters and it continued to probe in different angles.
On Friday night, the police personnel found three persons moving under suspicious circumstances near the Erode bus stand and inquired them.
In the preliminary inquiry, they were identified as the promoters of the TVS Emu Farms – Balaji (26) of Thanjavur, Raja (28) and Aravindhan (27), both residents of Coimbatore. They were arrested and later remanded to 15 days judicial custody.