Chit fund fraud: MD, wife land in city police custody

Bengaluru: The managing director of Tripura Chit Fund Private Limited, who was accused of cheating nearly 80,000 depositors to the tune of Rs 200 crore, and his wife have been taken into custody by the Malleswaram police from Tamil Nadu police.

The two accused has been identified as P.V. Krishna Prasad, 51, hailing from Chennai, and his wife K. Sumannah, 49, another director of the firm. They were arrested by the Tamil Nadu police in April.

The police said the company, which has its headquarters at Saidapet in Chennai, had 220 branches all across the country. In Bengaluru, they had branches in Chandra Layout, Dasarahalli, Bagalagunte and Malleswaram.

Prasad had promised investors of high returns and made them deposit crores of rupees, but did not return their money. Instead, he closed all the branches in the city overnight and escaped with their money.

The police said that one of the investors had registered a complaint at the Malleswaram police station. A senior official said the accused had stated that he had incurred huge losses due to demonetisation and was unable to return the money and hence was forced to close all the branches in the city.

He was sent to judicial custody after the interrogation. Meanwhile, the Chandra Layout police filed an application before the court seeking his custody as there were cases against him in their limits.

The police suspect that he has cheated many investors and the total amount is yet to be known, as the investigation was still on. 

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