Thiruvananthapuram (Kerala): Victims of the alleged ₹600 crore Nirmal Krishna chit fund scam, which reportedly affected nearly 13,600 investors across Kerala and Tamil Nadu, have raised serious concerns over the pace and conduct of the investigation. Members of the Nirmal Krishna Investment Protection Committee have accused the Kerala Police of deliberately delaying the probe and attempting to shield those responsible. They also alleged that the case was not transferred to the Central Bureau of Investigation (CBI) despite a recommendation from the state government, claiming political interference stalled the process.
After recording their statements before the Crime Branch, the victims alleged that investigating officers and government officials failed to act promptly despite fresh court directions to attach the accused’s properties. According to the committee, a list of properties identified for attachment had been submitted to the district administration well in advance. However, the required legal documents were reportedly filed only on the final day of the 60-day statutory period, causing the attachment proceedings to lapse.
The victims further claimed that only the prime accused, Nirmal Krishna, obtained a stay order from the High Court, while no meaningful investigation or arrests have been made against the remaining accused. They also alleged that a substantial portion of the money collected from investors was transferred abroad with the assistance of influential individuals and officials.
The alleged chit fund fraud came to light in 2017. According to the victims, thousands of investors from Kerala and Tamil Nadu invested their life savings in the scheme before discovering they had allegedly been defrauded. Despite the passage of several years, they say most investors have neither recovered their money nor received justice.
The Nirmal Krishna Investment Protection Committee has warned that if no significant progress is made in the investigation within the next three months, it will publicly disclose the names of political leaders whom it suspects of assisting the accused. The committee also warned that it would launch large-scale protests if justice continues to be delayed.
Committee president S. M. Nair alleged that although the Kerala government recommended a CBI investigation, the Union Government did not transfer the case to the central agency. He further claimed that evidence collected by the victims was suppressed at the political level. According to him, documents relating to the case were submitted to a former Union minister, who had assured the victims of efforts to secure a CBI probe. The same file was later handed over to a political functionary for onward submission but allegedly remained pending without any action.
No official response from the political parties or government agencies named in the allegations was immediately available. The claims made by the victims have not been independently verified.
According to the Future Crime Research Foundation (FCRF), large-scale investment and chit fund fraud cases require swift investigation, timely attachment of assets, comprehensive money trail analysis, and effective asset recovery mechanisms to safeguard investors’ interests. Experts note that prolonged delays can significantly reduce the chances of recovering diverted funds or tracing transferred assets.
The Crime Branch continues to investigate the case. The progress of the inquiry, the status of property attachment proceedings, and any further action by the concerned authorities will determine the next phase of this long-running financial fraud investigation.
