A special team of the Economic Offences Wing (EOW) of Tamil Nadu Police has arrested two agents who were part of the LNS International Financial Services, which allegedly swindled money of depositors after collecting it under the pretext of giving high returns.
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Following complaints from depositors, the EOW registered a case against the directors of the Vellore-based firm under the provisions of IPC for cheating, criminal breach of trust and other offences under the provisions of Banning Unregulated Deposit Schemes Act, Reserve Bank of India Act and The Tamil Nadu Protection of Interests of Depositors Act, 1997.
On August 5, the EOW conducted searches on 21 premises at Chennai, Tiruvallur, Kancheepuram, Vellore, Ranipet, Erode and Coimbatore. T.Jayachandran, Superintendent of Police, EOW said prima facie, it was found that LNS International Financial Services had collected money as deposit from the public with the false promise of return of 6% to 10% of monthly interest for the deposits. But, the company had failed to pay the monthly interest as well as the principal amount to its depositors. He said over one lakh people had deposited their money to the tune of over ₹6,000 crore with this firm.
The special team has now arrested two agents — I.Kuppuraj, 40, of Jawahar Nagar, and Jegannathan, 34, of Nemili, near Arakkonam. Both were involved in the collection of several crores of money from the investors and sending it to the company and the directors. Twenty one property documents were seized from them. Further investigation is on to trace the main accused in the case, the officer said.