ED seizes assets of chit fund company owner

ED attaches assets worth ₹23.75 cr of Kechery Enterprises in Kerala for collecting illegitimate deposits from public. Assets include immovable properties worth ₹9.23 cr and movable properties worth ₹14.52 cr. Accused had promised high returns and diverted money to other business entities. Arrested and in judicial custody.

The Enforcement Directorate has provisionally attached assets worth ₹23.75 crore belonging to Venugopal S., proprietor of Kechery Enterprises and managing director of other Kechery group of business entities, and Bindhu Venugopal S. in a case of collection of illegitimate deposits from the public to the tune of ₹240 crore.

The attached assets worth ₹23.75 crore include immovable properties worth ₹9.23 crore and movable properties worth ₹14.52 crore.

ED investigation revealed that the accused, while accepting the deposits from the general public, assured hem high returns ranging from 15% to 18% per annum. The accused further assured them that, Kechery Enterprises having the recognition of the RBI, the investments were secured with the option to withdraw them any time and his business entity had got all the approvals from the State government and the Central government.

Eventually, more than 1,000 people got cheated in Kerala, leading to FIRs by the Kerala Police against the accused. The investigation also revealed that the accused, in connivance with key employees of Kechery Chits, had diverted the collected money to his other business entities and also used it for the acquisition of land in his name and construction of buildings thereon.

The accused had earlier been arrested by the ED and is in judicial custody.