The Tamil Nadu Economic Offenses (EOW) Police CID on Friday arrested a director of the now-defunct Aarudhra Gold Trading Pvt. Ltd., a non-banking financial company for cheating many depositors in Kancheepuram district.
Police gave the name of the arrested person as K. Harish, 31, of Kancheepuram. He was a functionary of the Sports and Skill Development Cell of the BJP in Tamil Nadu. However, the party clarified that he was removed from office in June last year.
Police said that from September 2020 to May 2022, Aarudhra Gold Trading Pvt. Ltd., operating from Aminjikarai, collected deposits totaling ₹2,400 crore from over one lakh investors by offering to give interest of 25% to 30% per month. The company did not keep its promise.
The companies had appointed agents and held meetings with depositors in luxury hotels to encourage them to invest with them. Company executives had made false promises. Following complaints from depositors, the economic offenses wing registered a case under various provisions of the IPC and 21 persons, including directors and agents, were named as accused by the police.
The special wing arrested nine people, including two directors Baskar and Mohan Babu, in May last year. Today, police arrested Harish and took him into custody. Police said he collected ₹210 crore from the public in Kancheepuram district and transferred the money to his account. The investigation revealed that he had purchased 30 properties in his name and the names of his relatives.
Police said their bank accounts had been frozen.
Police arrested another director of the company J. Malathi from Tondiarpet, who was in charge of branches in Chennai, Vellore and Tiruchi. She was reportedly on the run for the past 10 months and two luxury cars were seized from her.