Ex-army man held for cheating investors in Erode

The Economic Offences Wing (EOW) police in Erode on Wednesday arrested a 48-year-old ex-army man for allegedly cheating 345 investors of ₹62 crore.

In 2017, two companies, Unique Exports and East Valley Agro Farms, were started at Municipal Colony by Naveenkumar, 38, as managing director and Muthuselvan, an ex-serviceman from Ramanathapuram, as a partner. They promised a monthly return of ₹18,000 for a deposit of ₹1 lakh, and ₹15 lakh as a lump sum after 18 months for a deposit of ₹10 lakh. Many ex-servicemen and families across the State invested their money and received returns for only one month. After that, no returns were provided, and investors found the companies locked, with the office-bearers absconding.

Depositors, who were defrauded, lodged complaints with the District Crime Branch police. On November 23, 2023, when Naveen Kumar attempted to flee to Dubai, he was arrested at the Chennai airport. Subsequently, the case was transferred to the EOW. Muthuselvan remained in hiding for 10 months, before the police, acting on a tipoff, nabbed him in Salem.

He was taken to the EOW office for questioning and later produced before the Special Court for the Tamil Nadu Protection of Interests of Depositors Act in Coimbatore. Muthuselvan was later lodged in Coimbatore Central Prison.

Published - December 12, 2024 06:08 pm IST