The Economic Offences Wing (EOW) of the Coimbatore Police has registered a formal criminal case against a Kerala-origin couple operating a private textile company. The enforcement action follows widespread public complaints accusing the corporate leaders of orchestrating a high-yield investment scam that targeting senior citizens and retail depositors. Law enforcement cells have placed travel and banking holds on the suspects after they shuttered their regional commercial office and disappeared with substantial community investments.
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The 18% Monthly Return Trap and Initial Payout Lures
The core of the financial deception centers on the administrative operations of RV Fabtex Private Limited, an unlisted private firm running from Bharathiyar Road in Pappanaickenpalayam, Coimbatore. The company directors—identified as P. Vinu Valsan and his wife, Rithu Valsan, both originating from the Thrissur district of Kerala—systematically approached regional residents, offering investment portfolios tied to textile distributions.
To draw in capital, the couple promised an extraordinary 18% monthly interest return on individual investments. According to the primary complaint submitted by 61-year-old Vellalur resident K. Parthiban, the firm structured the deal so that an investment of ₹1 lakh would yield a monthly payout of ₹18,000, broken down into weekly electronic bank transfers of ₹4,500. Additionally, the directors executed signed agreements promising the absolute return of the principal block after a fixed six-month maturation phase.
The initial setup worked to erode civilian caution, as the firm successfully cleared payouts totaling ₹97,910 to Parthiban’s profile. Driven by the initial efficiency of the scheme, the retired government official liquidated secondary family deposits, adding an extra ₹2 lakh to the firm’s accounts in October 2023.
Sudden Lockdowns, Broken Pipelines, and Mass Defraudment
The financial framework completely unraveled after mid-December 2023, when all weekly interest processing abruptly stopped. Despite repeated digital and physical attempts by the account holders to establish communication with corporate managers, no administrative replies were generated.
The full scale of the operation came to light when the complainant and his family traveled directly to the Pappanaickenpalayam office parameter to seek an immediate principal withdrawal. Upon arrival, they discovered the entire commercial complex heavily padlocked. Dozens of matching retail investors were gathered outside the closed facade, realizing that the directors had entirely closed down the business lines and vanished from the station. The combined financial exposure across the gathered crowd indicates a large-scale, coordinated community extraction.
Financial Audits and EOW Grievance Reporting
The Economic Offences Wing has officially registered a comprehensive case and initiated multi-level forensic accounting sweeps on the corporate accounts linked to RV Fabtex. Investigators are systematically analyzing the signed physical investment papers, electronic bank routing trails, and institutional registration profiles to isolate the final destinations of the siphoned capitals.
State anti-corruption cells and security researchers have issued a general warning to retail investors, emphasizing that promises of fixed returns significantly outperforming prevailing market standards are almost always structural indicators of financial fraud. The public is advised to thoroughly audit the commercial registration, regulatory certificates, and baseline physical operations of any asset manager before transferring capital blocks. The EOW has released a public directive requesting all other citizens defrauded by RV Fabtex to instantly report their transaction logs at the local economic offenses cell to strengthen the ongoing prosecution.
