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CHENNAI: The Greater Chennai Police have invoked the stringent Goondas Act to detain two men linked to alleged financial fraud exceeding Rs 100 crore across multiple cases. The preventive detention orders were issued on October 28 following recommendations by the Entrustment Document Fraud Prevention Wing of the Central Crime Branch. The Commissioner of Police approved the detention after reviewing the investigative findings and multiple cheating complaints pending against the suspects at various police stations. Both men, who were earlier arrested from Andhra Pradesh, are currently lodged in Puzhal Central Prison as authorities pursue broader inquiries into their financial dealings.
The recent police intervention followed a formal complaint lodged by Manivannan, a businessman residing in Anna Nagar. According to the complaint, the prime suspect, Muthuvel, a resident of Villivakkam who also operated under aliases such as Lion Muthuvel, B.M. Chettiyar, and Muthukrishna, acted alongside his associate Gurubaran, also known as Jagan, to defraud him. The complainant stated that the two men approached him with an offer to arrange a business loan of Rs 50 crore at a low interest rate, convincing him to enter into a commercial arrangement.
Advance Payment Collected Under False Loan Promise
Acting on their assurances, the businessman paid an advance sum of Rs 2 crore to the accused. In addition to the upfront financial payment, the suspects collected signed blank cheques and relevant commercial documents under the pretext of facilitating the loan processing. Soon after securing the funds and paperwork, the duo allegedly began mounting pressure on the complainant to part with additional sums. When the businessman refused to comply with the fresh financial demands, the accused issued threats against him, prompting him to approach the Central Crime Branch for legal recourse.
Inter-State Manhunt Leads to Arrest in Ongole
Following the registration of the case, both suspects went into hiding to evade arrest, leading to the formation of a special police team. After tracking their movements across state borders, the team apprehended the duo in Ongole, Andhra Pradesh, on October 20. The police brought the suspects back to Chennai and produced them before a local court, which remanded them to judicial custody. Further inquiries revealed an extensive pattern of deceptive operations, showing that multiple cheating cases were already registered against the pair across various police stations for allegedly defrauding people of over Rs 100 crore.
Preventive Detention Ordered Amid Widening Investigation
Investigators suspect that the duo systematically targeted numerous individuals by offering fraudulent loan assistance, attractive investment opportunities, and various commercial transactions. Citing their persistent involvement in serious financial offences, authorities initiated proceedings under the Goondas Act to prevent further unlawful activities. While the accused remain confined in Puzhal Central Prison under preventive detention, investigators are working to trace the diversion of illicit funds, identify other victims of the network, and determine whether additional accomplices assisted in carrying out the widespread fraudulent transactions.
