Chennai police on Friday arrested Mohammed Sharshad B, 48, in connection with a financial fraud involving Rs 40 lakh. The arrest was made by Ernakulam South police from Vadapalani, Chennai, and Sharshad will be brought to Kochi for court proceedings.
Sharshad, a director of Penda Private Ltd, allegedly duped investors by promising high returns. Complaints were filed by K P Saju from Elamkulam and Rakesh Madhavan from Kadavanthra, claiming they were promised 24% annual returns, a 5% profit share, and a 5% stake in the company. Despite transferring funds—Rs 40 lakh from Madhavan in September 2023 and Rs 10 lakh from Saju’s wife in February 2023—the investors did not receive the promised returns.
The company’s co-founder and CEO, Saravanan, also faces charges in the case. Authorities have booked Sharshad under breach of trust and criminal conspiracy.
Sharshad previously made headlines for raising allegations against CPM state secretary M V Govindan and his son Shyamjith, claiming a UK-based businessman was involved in the leak of his letter to the CPM politburo.
Police investigations are ongoing to trace all parties involved and recover the misappropriated funds.
