2 more directors of Green Crest held in Rs 65 crore cheating case

COIMBATORE: Two more directors of Green Crest, a multi-level-marketing firm, have been arrested in connection with cheating investors of Rs 65 crore.
The Economic Offences Wing (EOW) sleuths identified the accused as B Padmavathi, 48, and her daughter B Saranya, 26, of Krishnasamy Nagar near Ramanathapuram in the city.
Nearly four months ago, the EOW police had arrested Padmavathi’s second husband B Manikandan, 48, and her son B Sanjaykumar, 27, who were also directors of the firm that was floated in 2018, in the case.
The firm had promised to pay its investors 0.5% interest on their investment on all working days for the plan period of 11 months, when the capital would be returned to them.
A source with the EOW police said Manikandan and his son had gained publicity for the firm, by displaying their photos with cricketer and many actors online.
Preliminary investigations revealed that more than 1,500 people from across the state had invested in the firm. “The firm used to pay the daily interest and it was stopped in May. When the investors met the directors of the firm, they threatened them,” the source said.
More than 50 investors had also besieged their house, demanding their money back. One of the investors, S Manicakaraj, 53, of Sowripalayam, lodged a complaint with the EOW police, who registered a case on July 29 and arrested Manikandan and his stepson. The two were subsequently lodged in the Coimbatore central prison.
The EOW police arrested Padmavathi and Saranya from a house in Chennai on Monday and they were booked under Sections 120 (B) (criminal conspiracy), 406 (criminal breach of trust), 420 (cheating and dishonestly inducing delivery of property) of the Indian Penal Code and Section 5 of the Tamil Nadu Protection of Interest of Depositors (TNPID) Act.
The two were produced before the judge of a special court for TNPID cases the same night and were remanded in judicial custody.
The source said they have received complaints from many people, who have together invested Rs 6.31 crore in the firm. “Victims can approach us for further action.”
He said they were on the lookout for Srinivasan and Karthikeyan, who were working as agents with the firm.
Police had earlier seized two cars, five mopeds and a goods auto from Manikandan. They have also sent a proposal to the government to attach his property.