Palakkad: In yet another financial scam, gullible investors from Kerala and outside have lost crores of rupees. As per complaints a private firm based in Coimbatore reportedly amassed a whopping Rs 3,500 crore by duping thousands of investors over the last few years with a promise of high returns.
The personnel of Universal Trading Solutions (UTS) had baited investors with the promise that an investment of Rs 10 lakh would be doubled within 10 months. They were also told that the firm had the required permission from Union Finance Ministry and the departments concerned. They were also given an official assurance on a stamp paper. However, the investments were not returned and subsequent judicial intervention proved ineffective in recouping the money.
Several cases were filed against UTS even in Kerala. But the Kerala cops reportedly do not have the authority to initiate action to retrieve the money. With the tenure of a settlement commission set up to disburse the money ending, the prospects of the investors getting back their deposits appear to be bleak.
The Kerala Police claim that arrests can be made as cases have been registered against the firm's Managing Director in Malappuram and Palakkad. However, they cannot take action to get back the money. The police said the procedures for retrieving the money could be carried out with the instructions of the High Court.
No response from owner, advocates
A Tamil Nadu native, Gautam Ramesh, is reportedly the MD of the firm. He is currently out of jail, but the company offices remain shut.
Though attempts were made to contact Gautam, he could not be reached over the phone. When the case was taken up at the Madras High Court, Gautam had assured that he would return the money to the investors and sought the court's help for this.
When the Tamil Nadu Police was approached with a complaint, the cops reportedly directed the investors to the judicial commission. But the commission's tenure has also ended.
Bare accounts
The Income Tax department had conducted an inspection at the Coimbatore offices of the firm in February last year. Financial dealings of the firm were found to be unlawful and the accounts were frozen. As there was little money in them, the Tamil Nadu Economic Offences Wing suspect that crores of rupees were shifted out prior to the inspection.
The High Court then constituted a settlement commission led by retired judge N Basha to receive complaints and disburse the money. Though some people filed complaints, most refrained from doing so allegedly over fears that they would end up losing more money.
The term of the judicial commission ended last month. Political clout was allegedly used to stop its proceedings.
