Police arrested one of the promoters of a private firm engaged in the contract poultry farming business on charges of cheating near Gobichettipalayam on Thursday.
Police said Karthika (24), a resident of Gobichettipalayam, and her husband Manikandan established a firm, Healthy Poultry Farms, a year ago and promised lucrative returns for the investment made in the contract poultry farming business.
Lured by the attractive returns, a large number of people in Gobichettipalayam block invested in the schemes promoted by the firm.
The promoters allegedly collected Rs. 1 lakh to 1.5 lakh as caution deposit from the investors and assured to provide up to Rs. 8,500 a month as maintenance charges for rearing poultry birds.
The firm, however, stopped providing monthly payments to the investors after the emu bubble burst in the first week of August this year.
As the investors were not able to contact the promoters of the firm, they registered complaints of cheating with the police. Based on the complaints, police arrested Karthika.
A search was launched to nab Manikandan and six others involved in the fraud. Further investigation was going on, police said.