The Economic Offences Wing (EOW) police in Erode arrested a 48-year-old ex-army man on Wednesday for allegedly defrauding 345 investors of Rs62 crore. Naveenkumar, 38, and Muthuselvan, a former soldier from Ramanathapuram, started two companies—Unique Exports and East Valley Agro Farms—in 2017 at Municipal Colony. Naveenkumar was the managing director, and Muthuselvan was a partner.
The companies promised investors a monthly return of Rs18,000 for a deposit of Rs1 lakh, and Rs15 lakh as a lump sum after 18 months for a Rs10 lakh deposit. Many ex-servicemen and their families across Tamil Nadu invested their hard-earned money based on these promises. Investors initially received returns for one month. However, after that, the companies ceased paying returns, and the office was found locked with the office-bearers absconding.
The police investigation revealed a well-planned scam, and the accused were tracked down by the Economic Offences Wing. Naveenkumar was arrested, and further investigations are ongoing to apprehend the remaining absconding individuals.
