More than 3,000 people are suspected to have been cheated in an alleged multi-crore investment fraud in Salem, Tamil Nadu, after a company accused of promising unusually high returns allegedly failed to repay investors. The Economic Offences Wing (EOW) has arrested one of the alleged key accused, while searches are underway for four others, including a couple.
The arrested accused has been identified as 45-year-old Shenpagapandian of Madurai. According to the police, he was a director of Profitable Ever Online Traders, a company established in Alagapuram, Salem, in 2014. Vijayaraghavan was reportedly working as the company’s manager.
51% Returns Allegedly Promised
Investigators said the company attracted members of the public by offering investment opportunities linked to the share market. It allegedly promised returns of up to 51% and assured investors of additional payments at the time of maturity. Company representatives reportedly conducted meetings at different locations to attract investors and persuade them to put their money into the scheme.
The investment arrangement allegedly continued to attract funds from people across several districts. However, investors later began complaining that the company had stopped paying the promised returns and was also failing to return the principal amount deposited by them.
How The Case Came To Light
The case came to the attention of the EOW after Mohan Murali, a manager working with a private paint company in Salem, approached the agency with a complaint. He alleged that he had invested ₹28 lakh in the company but had not received the returns promised to him. Based on his complaint, the EOW registered a case and began investigating the company’s activities and financial transactions.
A special police team subsequently travelled to Madurai and arrested Shenpagapandian. He was brought before a court in Coimbatore and remanded in judicial custody.
Four Others, Including Couple, Absconding
Investigators are now searching for Vijayaraghavan, his wife and three other alleged associates. According to the police, the group allegedly locked the company’s premises in Alagapuram before going into hiding. Their whereabouts are being traced as investigators attempt to establish the extent of their involvement in the alleged investment scheme.
₹100 Crore Investment Trail Under Scanner
Preliminary findings indicate that investors from different districts had deposited more than ₹100 crore with the company. However, officials said the exact amount involved in the alleged fraud is still being determined as the investigation continues.
The EOW is expected to examine the company’s financial records, investor details, bank transactions and other documents to determine how funds were collected and where the money was subsequently transferred or utilised. Investigators are also likely to establish the number of investors who deposited money, the amounts involved and the returns allegedly promised to them.
Police Probe Financial Trail
The case has raised concerns over investment schemes offering exceptionally high returns, particularly those that solicit money from the public through organised meetings and assurances of guaranteed or unusually large profits. Investigators will also examine whether the company had complied with applicable financial and regulatory requirements while collecting funds from investors.
Police said further arrests could follow depending on the evidence gathered during the investigation. The authorities are also working to trace the missing accused and verify the financial trail associated with the alleged scheme.
With more than 3,000 people suspected to have been affected and preliminary estimates indicating investments of over ₹100 crore, the investigation is expected to focus on identifying the complete network behind the operation and determining the final extent of the alleged financial loss tk the 3,000 Investors.
