Bengaluru Couple Behind Rs 100 Crore Chit Fund Scam Arrested

Admin   |   12 May, 2016   |   1312   |   3980

BENGALURU: In a major breakthrough, police have arrested a a couple who had allegedly cheated more than 85 people of Rs 100 crore through a chit-fund scam.

The accused have been identified as M Srinivas, 63, and his wife B G Pushpalatha, 55. Both are residents of Vijaya Bank Layout, behind Indian Institute of Management, off Bannerghatta Road.

Jayanagar police said, “The couple’s son and daughter-in-law started Shreyas Finance & Investments, Shreyas Chits, and Shreyas Souharda Co-operative Limited in Jayanagar 5th Block, a few years ago. The two had collected money from people towards a fixed-deposit and chit-fund scheme assuring high interest rates. People were quick to invest but, one fine day, found the offices closed and the owners missing. They had escaped after cheating hundreds of customers.” The son and daughter-in-law sensed trouble and fled to Hong Kong leaving the older couple to face the music.

Three of the investors registered a complaint, said police sources, and said that they had been cheated of nearly Rs. 10 crore.

The older couple had shifted out of their earlier home and were living in a rented house in Vijaya Bank Layout. They were produced before the judge and have been remanded in police custody for 10 days.

The investigations revealed that Srinivas and his wife had invested the money in the share market and real estate. They seemed to be doing well.

Other members of the family were also involved in the scam. The couple’s son Sudeep, a qualified architect, and his wife were also directors of the firm.

The accused, M Srinivas (63), and his wife B G Pushpalatha (55).