14 held in money-doubling scam in Salem, Rs 3 crore seized
The police action comes a day after the investors gheraoed Recreate Future India Private Limited, functioning at a rented building at Five Roads in Salem demanding action against the firm
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COIMBATORE: The Salem police on Sunday arrested 14 persons in a money-doubling scam and seized Rs 3 crore from them.
The police action comes a day after the investors gheraoed Recreate Future India Private Limited, functioning at a rented building at Five Roads in Salem demanding action against the firm and also for the return of their money.
Police arrested the firm’s directors Rajesh and his wife Sathyabama, who started the fraudulent firm two years ago, and 12 others in connection with the scam.
The firm lured people with a weekly return of Rs 650 for a deposit of Rs 3,500 to join. Also, double the investments were assured for those investing the bulk of Rs 50,000, one lakh and two lakhs. More than 200 people have invested their hard-earned money in the firm.
Besides, the company also distributed pamphlets promising part-time jobs in the salary range from Rs 4,000 to Rs 25,000 for part-time and full-time jobs. The firm failed to honour its promises, while news also spread out that the company may be closed triggering a protest.
The Pallapatti police and sleuths of Salem Crime Branch arrived and held an inquiry in the firm. As it turned out to be a fraud, the police arrested Rajesh and nine others and also seized Rs 3 crore in cash and 347 grams of gold from them. Further investigations are on.
The crackdown comes after the Salem police arrested 15 persons in a similar money-doubling scam and seized Rs 12 crore and 2.5 kg of gold from ‘Annai Therasa Manitha Neya Arakattalai’.
