Puducherr: The police arrested Thyagarajan (65) a chit fund owner on charges of allegedly cheating around 1,000 investors of about Rs 4 crore on Thursday.
According to media reports, he operated from Vellore in Tamilnadu and the officials arrested him from there. Officials said Thyagarajan had lured investors by promising high rate of interest but he neither paid it nor returned the deposit amount.
Around 1,000 people had deposited their money in the firm which evaded payment of the interest and the principal amount totalling Rs 4 crore, the police official said. Police took action based on the complaint by a man from neighbouring Velrampet village that he had invested Rs 11.18 lakh with the firm but did not get his money back, he said.