P Thangappan, 68, was arrested by the Entrustment Document Fraud (EDF) wing of the Central Crime Branch in Chennai on Wednesday for his involvement in a Rs 7.32 crore investment scam.
Thangappan, who holds the position of honorary general secretary at the Indo-Russian Chambers of Commerce and Industries Limited, allegedly appointed C Arunraj (38) as honorary deputy chairman using forged documents. Arunraj and his associates exploited this fake title to deceive a businessman based in Tiruchy, promising a Rs 2,000 crore investment from the Russian government.
Between March and October, the businessman transferred Rs 7.32 crore to their accounts. The accused used counterfeit Russian government insignia, flags, and a fabricated website to further deceive the victim.
The investigation revealed that the group also leased parts of the Indo-Russian Trade and Industry Chamber’s premises at the Russian Cultural Centre without the Russian Consulate’s knowledge. In addition, they collected nearly Rs 4 crore in cash and Rs 1.58 crore through bank transactions.
Several other individuals, including Arunraj, M Kumaran (43), S Nagendran (39), and others, were arrested in November last year. Police recovered significant assets, including 476 sovereigns of gold, 400 kg of silver, Rs 14.5 lakh in cash, and 11 luxury cars.
Additionally, the EDF has filed another case against Arunraj and Rupa after a Tiruppur businessman reported a similar scam of Rs 4.4 crore. Thangappan was remanded in judicial custody as the investigation continues.
