Fraud investigation: Two individuals held in connection to Arudhra trading scam

The company allegedly collected deposits totally ₹2,400 crore from over one lakh investors by offering to give interest of 25% to 30% a month; two directors were arrested in May last year.

The Economic Offences Wing (EOW) CID of Tamil Nadu Police on Friday arrested a director of now defunct Aarudhra Gold Trading Pvt. Ltd., a non-banking finance company for cheating many depositors in Kancheepuram district.

K Harish and J Malathy

The police gave the name of the arrested person as K. Harish, 31, of Kancheepuram. He was a functionary of Sports and Skill Development Cell of the BJP in Tamil Nadu. However, the party clarified that he was removed from the post in June last year.

The police said from September 2020 to May 2022, Aarudhra Gold Trading Pvt. Ltd., functioning from Aminjikarai, collected deposits totalling ₹2,400 crore from over one lakh investors by offering to give interest of 25% to 30% a month. The company failed to keep its promise.

The firms had appointed agents and conducted meetings with depositors at luxury hotels to lure them to invest with them. The directors of the firm had made false promises. Following complaints from depositors, the Economic Offences Wing registered a case under various provisions of the IPC and 21 persons, including directors and agents, were cited as the accused by the police.

The special wing arrested nine persons, including two directors Baskar and Mohan Babu, in May last year. Now, the police arrested Harish and remanded him in judicial custody. The police said he had collected ₹210 crore from the public in Kancheepuram district and transferred the money to his account. Investigation revealed that he had bought 30 properties in his name and his relatives’ names.The police said their bank accounts had been freezed.

The police arrested another additional director of the firm J. Malathi of Tondiarpet who was in charge of branches in Chennai, Vellore and Tiruchi. She was reportedly absconding for the last 10 months and two luxury cars were seized from her.