Chit-racket: DMK functionary held for cheating people

A local DMK functionary and his wife have been arrested for allegedly cheating people of over rs 65 lakh in a chit-racket, police said today.

Last Updated: Sep 21, 2011, 15:48 PM IST

Erode: A local DMK functionary and his wife
have been arrested for allegedly cheating people of over rs 65
lakh in a chit-racket, police said today.

Police said Saravanan, Erode third ward functionary,
and his wife conducted `unregistered chits` and collected
the amount from more than 500 persons.

When their deposits
attained maturity, several people demanded their money but
the payments were delayed and a few days ago, the couple
absconded, police said.

Following a complaint, they were traced near a hotel
here last night and arrested, sources added.

PTI