Ponzi scam allegedly cheats people of crore of rupees of savings
news Wednesday, February 11, 2015 - 05:30
The News Minute | December 18, 2014 | 2.40 pm IST A state-wide multi-crore Ponzi scheme has been unearthed in Shimoga district of Karnataka, in which thousands of people have been allegedly cheated out of their savings. A firm named Maithri Plantation and Horticulture has reportedly collected money from people from across state on the pretext of doubling their deposits upon maturity of the deposit. The company set up its office in Shimoga in 2010 and agents employed by the company were sent around to convince people to deposit their savings with the firm. Many people including coolie workers, petty shop owners, young working men and women, and big businessmen had invested with the firm. In Shimoga district the firm reportedly collected money to worth around Rs 3 crore. Across the state, the firm may have collected around Rs. 150 crore. But around a year ago, when people in Shimoga began to go to the office to collect their deposits along with the promised interest, but found to their dismay, that the office had been locked. Gradually it was learned that the company had had similar operations in other districts as well. In Tumkur and Chitradurga district, police have arrested some people from the company. A case has been registered in Shimoga.