COIMBATORE: The economic offence wing (EOW) police on Wednesday arrested two directors of multi-level marketing firm Green Crest for cheating investors of Rs 65 crore.
B Manikandan, 48, of Krishnasamy Nagar near Ramanathapuram and his stepson P Sanjaykumar, 27, had launched the firm at Krishnasamy Nagar in 2018, police said. “They promised 0.5% daily interest for investment and the capital after 11 months. Preliminary investigations revealed that more than 1,000 people from across the state had invested in the firm,” a police officer said.
“After the firm stopped paying interest from May, some investors approached the duo, who threatened them. On Wednesday, more than 50 investors besieged the directors’ house demanding their money and also lodged a complaint with EOW,” the officer told TOI. Police arrested the duo and they were remanded in judicial custody.
“We have formed a team to arrest Manikandan’s second wife Padmavathi, stepdaughter Saranya and agents Srinivasan and Karthikeyan. The family spent most of the money to lead alavish life. We plan to take them in custody for five days for inquiry,” the officer said.