Around 70 persons, who remitted an initial deposit of several lakhs of rupees with Dindigul District Education and Small Scale Entrepreneurs Cooperative Welfare Society, thronged the society office on Monday as the office was not opened for the past three days.
In a complaint, they said that the society had published advertisement in a vernacular newspaper two months ago promising to arrange education, housing and personal loan, mortgage loan and loan for small scale entrepreneurs at a nominal interest.
When the individuals contacted the office, it advised them to deposit certain percent of the loan amount as initial deposit plus document charges of a few thousands of rupees. They also said that the loan amount would be issued only in the form of cheque on June 3 and 5. Many borrowers, mostly from villages around Dindigul, Athoor and Vedasandur unions remitted initial amount ranging from Rs.15,000 to Rs.50,000 to obtain loan. The firm was functioning on Tiruchi Bypass Road for the past two months only. It also collected photocopies of all documents necessary for disbursal of loan. Some borrowers, who failed to submit document copies, came to the office this morning to submit them. Nearby shop owners told them that the office was closed for the past three days.
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All the borrowers handed over individual petition to the Superintendent of Police, A. Saravanan, in this connection. The SP assured to take action.