As part of the continuing investigation into the Popular Finance scam, the Kasaba police on Friday seized a number of documents related to various financial transactions and deposits made at the financier’s Kallayi Road branch office.
The officer heading the probe said the branch office was closed to secure the remaining documents and make them available for scrutiny in the next phase of investigation.
Around 49 grams of gold and liquid cash to the tune of ₹22.5 lakh had already been recovered from the branch. The office key had also been seized. The management, however, told the police that cash was accepted at the branch while returning the pawned gold ornaments to the depositors.
The police said they had received complaints from 22 persons against the suspected financial fraud by the firm. Investors claimed a loss of ₹1.86 crore from the branch alone. In Kozhikode city, investors have complained against four branches within the limits of Kasaba, Mavoor, Nadakkavu and Chevayur police stations, they added.
Since the fraud involved several deals and investments within and outside the country, the State government had decided to hand over the case to the Central Bureau of Investigation (CBI). Several investors had also approached the High Court, seeking a high-level inquiry.
According to the police, the Pathanamthitta-based firm had promised investors an interest rate of 12% a year or doubling of deposit in seven years. The managing director of the firm along with his family members had already surrendered before the police, as there were over 2,000 complaints against the financial fraud.
