Suspected financial fraud: investors form action council

Allegation that company collected ₹5 lakh each from over 100 investors

July 19, 2019 12:06 am | Updated 12:06 am IST - Kozhikode

A group of about 60 entrepreneurs in northern Kerala formed an action council in the city on Thursday, alleging that they were duped by the management of a private polyclinic network headquartered in Kozhikode.

The action council leaders who took up the complaint with the District Collector and District Police Chief claimed that the company collected ₹5 lakh each from over 100 investors in the Malabar region by offering them professional and technical support to open and run polyclinics in their regions.

Though the clinics were opened, the company did not keep up its promises in giving the assured 20% returns to the enrolled entrepreneurs or other medical services earlier guaranteed for the regular functioning of the clinics, they alleged.

‘Contract violated’

Antony Cheriyan, one of the complainants, said, “The private management denied to return the security deposit even after violating the official contract and issued rubber cheques to many disgruntled entrepreneurs.” He also claimed that the majority of those who were caught in the fraud were Gulf returnees and rural entrepreneurs.

M. Hakkeem, a Palakkad native and one of the coordinators of the action council, said they would launch an indefinite agitation in front of the company’s office in Kozhikode to get the security deposit back. “We have also sent complaints to the Union and State ministers for immediate action,” he said.

Allegations dismissed

Meanwhile, the private company dismissed the allegations on their official Facebook page on Thursday, claiming that it was part of a smear campaign to tarnish their reputation.

In the statement, they also claimed that cases had already been registered against some of such campaigners.

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