The Kerala coordinator of VPVV Techno Constructions accused of running a ₹1,000-crore investment fraud by showing fake contracts for manufacturing weapons for the US Department of Defence has been arrested.

P Pradeep Kumar, a native of Parippally in Kollam, was arrested in connection with a case registered over cheating of AM Muneer, a native of Vadasserikonam in Varkala, of ₹70 lakh.

Pradeep was taken into custody after Muneer spotted him at a hotel near the Cherthala railway station around 4 pm on Sunday. With the help of residents, Muneer detained Pradeep and informed the police. The Cherthala police took him into custody before handing him over to the Varkala police, who recorded his arrest.

According to Muneer's statement, the accused claimed that the company had secured major contracts from the US Department of Defence. They allegedly promised investors that an investment of ₹1 crore would fetch a ₹5,000-crore sub-contract and a 25 per cent profit.

Muneer also alleged that he was lured into investing money with the promise of making him a partner in the ₹350-crore 'Shivapuri Temple construction project' in Varkala.

The other accused in the case are Venkitta Venkit, chairman and mastermind of VPVV; GS Biju, the company's Kerala coordinator; Dr Saab, the mastermind of the fraud; and Yelathi Padmaraj Gopal.

Delhi Police arrested Venkitta Venkit earlier this month. Company directors Hitesh Kumar, a native of Delhi, and Rahul Rajeev Nair of Koothattukulam in Ernakulam are currently out on bail.

Venkit, Pradeep Kumar and another coordinator, Vinod Warrier, formed the VPVV company by combining the initials of their names.

The VPVV fraud was first brought to light by the late Malayala Manorama Special Correspondent Jijo John Puthezhath.