Suspended Chennai Police Inspector Arrested in Rs 20 Crore Gold Coin Fraud

The Economic Offences Wing (EOW)-CID on Tuesday arrested a suspended police inspector, Sheela Mary, and two others for their alleged involvement in a gold coin investment fraud scheme that targeted police personnel and their families in north Chennai. Sheela Mary, who was formerly the Inspector of the Royapuram All Women Police Station, is accused of using her position to promote the fraudulent scheme.

The investigation began after a bank employee lodged a complaint alleging that the organizers of the scheme had cheated investors of more than Rs 20 crore. Following the complaint, the EOW registered a case on May 25 under the Bharatiya Nyaya Sanhita (BNS) and the Tamil Nadu Protection of Interests of Depositors (TNPID) Act against Vinayaga Enterprises, a company based in M.R. Nagar, Kodungaiyur, and four individuals.

According to police sources, the investment scheme was initiated in 2023 by Prabhumani, a relative of Sheela Mary. Operating through a WhatsApp group, the scheme promised investors gold coins at prices lower than the market rate, alongside assured monthly returns on deposits. Vinayaga Enterprises was set up specifically to run the operation.

Investigators alleged that Sheela Mary actively promoted the scheme among her colleagues in the Chennai City Police. She reportedly persuaded several police personnel and their families living in police quarters in north Chennai to invest substantial amounts of money.

To build trust among early investors, Prabhumani reportedly distributed gold coins at discounted prices during the initial phase of the scheme. Investigators noted that Prabhumani was accompanied by Sheela Mary in her official police vehicle during these distributions. This tactic successfully boosted investor confidence and attracted larger deposits. However, after collecting significant sums, the organizers allegedly stopped supplying the gold coins and failed to pay the promised monthly returns.

While Prabhumani was arrested on June 9 and remanded to judicial custody, Sheela Mary and two other accused, Senthilkumar (alias Senthil) and Kalpana, had been absconding. The EOW tracked them down and announced their arrests on Tuesday.

So far, investigators have officially identified 56 depositors who invested approximately Rs 8.17 crore in the scheme. The EOW-CID is continuing its investigation to identify additional victims who may have been defrauded.