Cases of financial irregularities to be probed

Crime Branch would probe various cases of financial irregularities, totalling Rs 1000 crore by multi-level marketing companies in Kerala.

Last Updated: Jun 19, 2011, 19:43 PM IST

Kochi: Crime Branch would probe various cases of financial irregularities, totalling Rs 1000 crore by multi-level marketing companies in Kerala, a top state police
official said on Sunday.

Investigation would be completed in a time bound manner
within five to six months, DGP Jacob Punnose told reporters
after high level meeting of police officers from across the
state at nearby Aluva.

Strong action would be taken against the guilty. Police
officers found involved in the money racket would not be
spared and would be dismissed from service, he said.

Economic offences, especially frauds like "money chain"
were rampant in the state, he said, adding, cases of "money
chain cheating" were reported from Kozhikode and Wayanad
districts.

Police came to know that some companies, which were closed
after cheating public, had relaunched their business in some
other names, in other places. Police are also aware that some
private banks were helping the companies indulging in economic
offences, he said.

Complaints of frauds have been received against at least
seven companies including Chennai-based Tycoon Empire
International Ltd, which had collected Rs 370 crore from
50,000 investers and Bizarre group, which had collected Rs 55
crore from depositors, he said.

Companies, which had cheated the public of about Rs 300
crore, had operated 14 accounts in false names and address in
a private bank, he said.

Police would report the matter to RBI, he said.

On builders not completing various housing projects, the
DGP said controlling such builders was an impossible task.
Public should enquire the credibility of the builders before
making investments he said.

PTI