In the latest development regarding a multi-crore chit fund scam, prime accused K Nirmalan, 50, surrendered before a special court, formed under the Tamil Nadu Protection of Interests of Depositors Act, 1997 on Wednesday. The Judge, M Meera Sumathi, remanded Nirmalan in judicial custody till November 29.
The case relates to the defrauding of thousands of depositors of Nirmal Krishna Nidhi Limited, Nirmal Krishna Chit Fund and Palukal Krishna Chits Private Limited to the tune of several crores and scamming them, reported The Hindu. The Economic Offences Wing (EOW) of Kanniyakumari district in their investigation has so far received 4,802 petitions from investors, who claimed that they were defrauded to the tune of Rs 348.57 crore.
The main accused of this humongous scam, Nirmalan has been running the Nirmal Krishna Benefit Fund since 1996. The benefit fund had allegedly lured depositors by offering interest up to 20%. The accused had business operations in Kanniyakumari and also in Thiruvananthapuram in Kerala.
The fraud came to light only when Nirmalan applied for insolvency in a sub court in Thiruvananthapuram, claiming that he had collected up to Rs 600 crore in deposits from as many as 13,668 depositors, but possessed properties worth only Rs 100 crore, the police said.