The Madras High Court on Tuesday ordered a CBI enquiry into the alleged cheating of a large number of people who had deposited money to the tune of several crores of rupees in two companies in Tirupur.
Justice C.T. Selvam passed the order on petitions by the Paazee Nidhi Niruvanathal Bathikkapattore Nala Sangam (welfare association of affected persons) and K. Loganathan of Namakkal.
The Judge directed the CBI Director to take up investigation and entrust it to a competent officer. In its petition, the association, represented by its president, N. Nachimuthu, said K. Mohanraj, Kathiravan and Kamalavalli were running two companies – Paazee Marketing Company and Paazee Forex Trading India Private Limited. In the course of their business transaction, the three lured the public to deposit their money by promising high interest rates and attractive returns.
ADVERTISEMENT
The three did not return the money invested by the public within the stipulated time. They issued post-dated cheques, which bounced. Nearly 48,000 persons had invested Rs.1600 crore, the petitioner said. The affected persons had filed complaints in 2009 and 2010.
The Economic Offences Wing and the Central Crime Branch, Tirupur, had not taken any action.