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They have been involved in collecting several crores of money from depositors towards LNS International Financial Services

They have been involved in collecting several crores of money from depositors towards LNS International Financial Services

A task force from the Economic Crimes Wing (EOW) of the Tamil Nadu Police has arrested two officers who were part of LNS International Financial Services who allegedly defrauded depositors’ money after collecting it on the pretext of donating high yields.

Following complaints from depositors, the EOW filed a complaint against the directors of the Vellore-based company under the provisions of the IPC for cheating, criminal breach of trust and other offenses under the provisions of the Act on prohibition of unregulated depository schemes, Reserve Bank of India Act and Tamil Nadu Depositors Interest Protection Act 1997.

On August 5, the EOW conducted searches at 21 premises in Chennai, Tiruvallur, Kancheepuram, Vellore, Ranipet, Erode and Coimbatore. T. Jayachandran, Superintendent of Police, EOW said At first glance, it was found that LNS International Financial Services had collected money as a deposit from the public with the false promise of a return of 6% to 10% monthly interest for the deposits. But, the company had not paid the monthly interest as well as the principal amount to its depositors. He said that more than 1 million people have deposited their money amounting to more than ₹6,000 crore with this company.

The task force has now arrested two officers – I.Kuppuraj, 40, from Jawahar Nagar, and Jegannathan, 34, from Nemili, near Arakkonam. Both were involved in raising several crores of money from investors and sending it to the company and directors. Twenty-one title deeds were seized from them. Further investigation is underway to locate the main defendant in the case, the officer said.