Mani was just one of 21,000 people who had chosen to invest his hard-earned savings in gold scheme started by well-known Chennai jeweller – Nathella Sampathu Chetty (NSC).
“I had started investing in the scheme three years ago and have paid about Rs. 1,30,000 to Nathella Sampathu Chetty. I came to know about the scheme through a WhatsApp message which asked the customers to pay Rs. 2000 per month,” says Mani to TNM.
But four months ago, Mani stopped paying the instalments, when he learnt that his deposits had disappeared. “I have not received any money in return,” he says anxiously.
The jewellers had closed seven of its shops in Tamil Nadu recently following financial losses.
Now, Nathella Sampathu Chetty has admitted to the economic offences wing (EOW) of the police that it owes Rs 75 crore to over 21,000 people, as per a report by A Selvaraj in The Times of India.
Out of the over 21,000 people who had paid monthly investments under various schemes, police have received complaints from 1,000 people.
A case has been registered against the board of directors of the firm.
Besides the managing director of the firm, Ranganatha Gupta, his sons Prabanna Kumar and Prasanna Kumar, and their relative Kota Suresh were also named along with five other directors of the firm, the report adds.
The case has been registered under IPC sections 406 (criminal breach of trust) and 420 (cheating) and relevant sections of the Tamil Nadu Protection of Interest of Depositors Act, 1997.
Ranganatha Gupta, his sons and Kota Suresh were later summoned to the EOW office, where their statements were recorded.
The report says that checks were conducted at the homes of the owners and directors and EOW officials recovered several documents of high-value properties.
Many properties have been identified including showrooms located in prime areas, a school built in around two acres of land in Ambattur, two houses at Kilpauk.
The EOW officials have begun steps to attach these properties to the TNPID court.
The properties will be eventually sold through the court and the money will be returned to the investors.
Preliminary inquiries have revealed that some of the properties were mortgaged in banks across the city.
The owners were planning to sell a few of the properties to give a fresh impetus to their business following demonetisation, the report says.
Police say that the mismanagement by the NSC had resulted in a financial crisis which grew worse in late 2016 and 2017.