A money-doubling scheme that promised investors they could “Pay Rs1 lakh and get Rs2 lakh in 100 days” has left over 40 people stranded, with a total of Rs1.12 crore swindled in the process. The scam, operated by a fraudulent company in Choolaimedu, was uncovered after a complaint by R Ramesh, a businessman from Kovil Pathagai, who lost a significant portion of his savings.
The investigation, led by the Entrustment Document Fraud (EDF) wing, revealed that the scheme was masterminded by Nithya, the founder of Capital Gain Company, which she started last year. Initially presenting herself as a stock trading expert on social media, Nithya attracted followers with posts about successful stock market updates and cryptocurrency investments. This created an illusion of financial success, luring unsuspecting individuals into her fraudulent investment plan.
Victims were promised daily returns of Rs2,000, and many initially invested smaller amounts of money. However, as the scheme progressed, victims were encouraged to increase their investments after receiving some initial returns. One victim, a property owner from Kancheepuram, sold his property and invested Rs50 lakh after seeing positive returns. Another victim, a ministerial staffer at the city police commissioner’s office, took out a loan for Rs9 lakh to invest in the scheme. Though she received payments for 20 days, the payments eventually stopped, as did those for many others.
An officer involved in the investigation stated, “Many started with a smaller investment, such as Rs1 lakh, and gradually increased their contributions to Rs50 lakh or even Rs1 crore upon seeing returns.” As the payments stopped, victims realized they had been duped.
Following Ramesh’s complaint, the EDF team launched an investigation, leading to the arrest of Dharmaraja (Nithya’s husband), Samnath (the company’s director), and Vijayakumar (an agent who helped recruit investors). According to police, Vijayakumar earned Rs30 lakh in commissions for introducing businessmen to invest in the scheme.
In addition to the arrests, police have issued a lookout circular for Nithya, the prime suspect, who has reportedly fled to the UAE. Authorities are now waiting for her return to face charges.
The arrested trio was remanded in judicial custody after being presented before a magistrate court in Chennai on Wednesday.