Fraud firm gives plain paper as ‘cash’ to investors
The promoter of the firm, Umamaheswari, and 10 agents are absconding
By : DC Correspondent
Update: 2014-10-19 02:24 GMT
Vijayawada: Hundreds of women investors in an unauthorised finance company were on Saturday literally left holding bundles of plain paper which the firm tried to pass off as bundles of cash, in Vijayawada.
The finance company handed over the ‘cash’ bundles after about 630 investors, asked it to return the hard-earned money they had deposited with Umamaheswari Pvt Ltd. The investors were told to open the packets after going home.
However, this made them suspicious and some of them opened the packets, only to find bundles of plain paper, with a currency note on either side. When the women realised that they were cheated, they caught and thrashed the firm’s manager M. Narendra and handed him over to the Satyanarayanapuram police.
After receiving a complaint from G. Vijaya Lakshmi and 62 other women who represented the 630 investors, police formally took Narendra into custody. The promoter of the firm, Umamaheswari, and 10 agents are absconding.
The women said that they had been promised by the firm that each deposit of Rs 5,000 would fetch them a whopping Rs 1 lakh. Later in the evening, the money belonging to the victims, amounting to around Rs 3 lakh, was returned, said the police.
However, the police have registered a case cheating and fraud against the representatives of the firm.