Sleuths of the Economic Offences Wing (EOW) have arrested S. Kathirvel Murugan (51) of Ramayanpatti, who was running a chit fund agency at Samathanapuram here, for defrauding investors.
Sources said on Wednesday that one Anwar Kadar Mydheen, who invested Rs.50,000 in the agency, had lodged a complaint on November 8 that he was cheated by the agency. Later, 15 other investors also preferred complaints against the firm.
Investigation by the EOW police revealed that after cheating investors under the name of MRDT in Madurai in 2014, the firm shifted base to Tirunelveli and had been functioning under the name of AGS Wealth Corporation. It had mobilised deposits to the tune of Rs. 75 lakh.
S. Ganesan (38) of Palayamkottai, the brother of Kathirvel Murugan, was arrested on November 14 on a similar charge of cheating investors. Around 200 investors had deposited their money in his agency.
The EOW have registered a case under IPC Sections 406, 420 and Section 5 of TNPID Act, 1997, against the accused.