Daijiworld Media Network – Kasargod (SP)

Kasargod, May 9: Reports say that a large number of people, particularly those hailing from villages, had been duped by a blade company operating in Kasargod and Kannur districts. Relating to the fraud, which is said to run up to Rs 500 crore, Balakrishnan (40), resident of Kalakkiyil in Kannur Dharmada, was arrested on Saturday May 7.

The policemen, during the raid on Balakrishnan’s house, recovered records pertaining to financial dealings of Rs 45 lac. A raid on the house of K Babu (24), who was the main accused, at Mumbalamkanam Road in Payyannur, unearthed documents, computers, etc, which revealed dealings worth a crore rupees. Babu however, could not be traced.

Babu had given birth to a fake company with the name, ‘Currency Trading’ a year back, and collected deposits worth Rs 500 crore by promising to invest money in foreign currencies and make windfall profits. He used to promise to pay interest at the rate of Rs 10,000 per month for each lac of rupees deposited. In many cases, he paid interest for the first month, and urged customers to reinvest interest as and accrued, in fixed deposits with him, it is said.

The policemen said that a number of agents had been appointed in the name of the said company to attract customers.