Salem police bust money-doubling scam; arrest 15, seize Rs 12 crore cash and 2.5 kg gold

COIMBATORE: The Salem police arrested fifteen persons in a money-doubling scam and seized Rs 12 crore and 2.5 kg of gold, on Friday.

The police said Vijaya Banu (48), from Vellore, who runs ‘Annai Therasa Manitha Neya Arakattalai’ in a marriage hall in Kamarajar Colony in Ammapet had lured people to invest their hard-earned money by promising attractive returns ranging from Rs one lakh to Rs five lakh.

However, Vijaya Banu did not give any receipt for the amount received from investors. Based on a tip-off, a police team searched the marriage hall on Thursday evening. Following this, the members of the trust broke into an argument and also manhandled the cops.

As tension prevailed, a troop of over 100 cops assembled in the marriage hall and began the process of counting the cash with the help of bank staff using counting machines. After a night-long counting, police were shocked to seize around Rs 12 crore in cash, 2.5 kg of gold, and 10 kg of silver.

Police nabbed Vijaya Banu and her two aides Jayapratha (47), and Baskar (49), both from Salem, while 12 others were nabbed for preventing police from discharging their duty. Police suspect the accused persons to have swindled hundreds of crores through the money-doubling scam.

Police said the modus operandi of the accused is to provide food to poor people at a subsidised cost of Rs 10 and also extend welfare measures. After gaining the trust of the people, Vijaya Banu lured them into her trap.

Interestingly, on Thursday, when police were in action, many villagers came to deposit in a special scheme that offered Rs two lakhs in seven months for an investment of Rs one lakh. As the news of the search broke out, a large number of investors protested against the police action. Police said they took out cash bundles hidden in garbage bins. Further inquiries are under way.