The Coimbatore City Police on Sunday night arrested Siddiq Ali (32), one of those convicted in the Coimbatore serial blasts case, on charges of wrongful confinement, extortion and intimidation of Sasirekha, a woman finance firm promoter.
Sasirekha was arrested in connection with a cheating case under investigation.
Siddiq was released recently by setting off his conviction in the serial blasts case against the trial period. He is the son of Syed Ahmed Basha, founder-leader of Al-Umma and prime accused in the serial blasts case serving a life sentence. According to police, Sasirekha (45), wife of Kalki of Nehru Nagar in Kalapatti, was running a multi-level marketing business. She diversified into online trading, roping in investments from a number of persons for her firm KS Mercantile. She is said to have issued cheques to investors to the tune of Rs.65 crore.
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The Coimbatore City Crime Branch, based on a complaint, registered a case against Sasirekha in February under sections 420 of the Indian Penal Code (cheating) and sections 3 and 4 of the Prize Chits and Money Circulation Scheme Banning Act of 1978.
Siddiq is said to have approached Sasirekha, asking her to settle the dues to his relative, Mohammed Nissar, from Erode. Out of the Rs.1 crore due to him, she is said to have given Rs.40 lakh and repayment of Rs.60 lakh was pending.
On hearing this, more persons reportedly approached Mohammed and Siddiq for getting back their money. The police, on the lookout for Sasirekha in the cheating case, came to know that she was in the custody of Siddiq.
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On Sunday evening, Siddiq is said to have brought Sasirekha to a house at Podanur for negotiating the settlement for other investors. Immediately, City Police Commissioner C. Sylendra Babu deputed personnel from the Crime Branch and the Law and Order, who reached the house and took Siddiq and Mohammed into custody.
They have been held under sections 342 (wrongful confinement), 384 (extortion) and 506 (i) (criminal intimidation) of the Indian Penal Code. They were produced before the magistrate and have been remanded to judicial custody.
A search is on for Babu alias Mohammed Jaffar Rafi.
Sasirekha has been remanded to custody in the cheating case.