Absconding Chit Fund Operator Arrested in Chennai Over Rs 20 Crore Fraud

The Kanyakumari district police have arrested a chit fund operator in Chennai after he remained absconding for nearly two years in connection with a multi-crore fraud case. The accused, Paulraj, a resident of Kattavilai near Kadayalumoodu, was apprehended by a special police team in Chennai following complaints that he cheated over 300 depositors of more than Rs 20 crore through his firm, Divine Chit Fund.

According to police, Paulraj operated Divine Chit Fund and collected deposits ranging between Rs 10,000 and Rs 50 lakh from residents across Kadayalumoodu, Pechiparai, Thirparappu, and adjoining hill areas in Kanyakumari district. Around two years ago, he abruptly closed the chit fund office and went missing, prompting repeated complaints from affected depositors.

The investigation gathered momentum recently after 90 victims jointly approached the Kanyakumari district superintendent of police and the district crime branch. These depositors formally alleged that they had lost more than Rs 10 crore to the fraudulent scheme. Many of the victims stated that they had invested their hard-earned life savings earmarked for critical life needs, including education, marriage, employment, and medical treatment.

Following the complaints, a police team led by Deputy Superintendent of Police Pethuraj launched a search operation and successfully traced Paulraj to his location in Chennai, where he was taken into custody. Following his arrest in Chennai, Paulraj was brought back to Kanyakumari, where he is currently being interrogated by officials of the district crime branch.

Victims have also alleged that Paulraj transferred several properties registered in his name across Kanyakumari and Chennai to benami holders in an effort to evade asset seizure. The depositors urged the police to trace all such properties and attach the assets to facilitate the recovery of their lost funds.

Meanwhile, the district crime branch has issued an appeal to the public, urging any other individuals who invested in Divine Chit Fund and were defrauded by Paulraj to come forward and file official complaints with the police.