Daijiworld Media Network - Konni (SHP)
Konni, Aug 27: A Vakayar based company called Popular Finance has created panic among its investors after the owners shut down the firm and went underground. The company is said to have Rs 2,000 crore worth deposits leading the investors to assume the worst.
Popular Finance has over 274 branches, with around 22 branches in Bengaluru. Although the company was functioning well, a sudden financial crisis is believed to have led to its fall.
The company has also been subject to several accusations and complaints by its customers. Following which, a special team was appointed to investigate the matter. However, the owner filed insolvency in the court just the other day.
The company was owned by Vakayar resident Roy (Thomas) Daniel, his wife Prabha and their family. Two weeks ago, the family shut the company’s registered office in Vakayar and went absconding. Based on complaints from the investors, Konni police registered a cheating case against Daniel and Prabha. The company owes money to over 1,500 people including NRI investors.
As the registered office was closed, investors approached other branches demanding their money back. Following this, the other branches are also being closed down, Pathanamthitta superintendent of police K G Simon said.
He pointed out that the firm does not have resources to return all the money to its investors. More investigations are being held into other firms owned by the accused, the superintendent asserted.
As per police investigations, customers have invested between Rs 10,000 to Rs 80,000 in the firm. Most of the customers had made the investments for constructing houses, for marriage and to earn income after retirement. The investors maintained that they were paid interests properly until last month.
Further evidence which surfaced about the firm stated that the company was not functioning properly since the last four years.
Meanwhile, airport authorities have been alerted by the police regarding the owners trying to escape to foreign nations. Konni CI P S Rajesh has been placed in charge of the investigation and BJP district general secretary VA Sooraj also demanded detailed inquiry in the case.