Mahila Court Judge M.P. Subramanian (holding additional charge of the court for Tamil Nadu Protection of Interests of Depositors Act cases), on Thursday, granted nine days police custody of M. Vivek (35) and Senthilkumar (34), promoters of a multi-level marketing firm and the brother of the former M. Nithyanandam (24).
They were taken into custody by a special police team of the Economic Offences Wing (EOW) from two posh villas in Palavakkam in Chennai recently where they were living with their families, even as the police were searching for them. Meanwhile, there were instances of the relatives of the firm’s promoters and agents of the firm being abducted either in a bid to demand ransom or to pressurise them to return the investments made. After complaints running to nearly 1,000 accused the promoters of having cheated investors to a tune of Rs 818 crores, police registered a case against the promoters of the firm under sections 120 B (conspiracy), 420 (cheating) of Indian Penal Code and under sections 4,5,6 of Prize Chits and Money Circulation Governing Act.
Following a High Court directive, the police raided the two houses of the promoters in Peelamedu in January this year and sealed them after unearthing documents relating to immovable properties worth over Rs 70 crore and also searched the bank lockers of the accused besides freezing the 14 bank accounts of the duo. Initially, the case was investigated by the District Crime Branch and then was transferred to the EOW. Police also seized an imported luxury car worth several lakhs and papers pertaining to overseas investments and purchase of gold and diamond jewels. The EOW special team sought custody of the accused for ten days. Judge Mr.Subramanian asked the accused whether they had any complaints against the police during their custody from the time of arrest till their production before the court and the accused replied in the negative.
On hearing of the arrest of the promoters, large number of investors started making a beeline to the police office.