Kochi: Kolatt Dasan Prathapan and Sreena Prathapan, the promoters of scam-hit Highrich Online Shoppe Private Ltd, appeared before the Directorate of Enforcement (ED) for questioning on Monday almost a month after reportedly fleeing the investigation.
The couple's counsel had made a submission to cooperate with the investigation before a Special Court hearing money laundering cases in Kochi on Monday, February 12, according to court documents. ED's Special Public Prosecutor M J Santhosh told the court that the couple had earlier failed to appear before the investigation officer despite a notice being served on them.
The scam
The Prathapans are accused of duping people of crores of rupees by allegedly running a pyramid scheme under the garb of an online retail store. A pyramid scheme is an illegal investment scheme where each member recruits two new persons and their investment is used to pay early investors.
Chief Minister Pinarayi Vijayan told the Assembly on January 29 that Highrich illegally raised Rs 3,141.34 crore from the public. Depositors who were duped have filed cases against the couple in various police stations under the Banning of Unregulated Deposit Scheme (BUDS) Act. The highest number of cases are filed at Cherpu Police in Thrissur district.
On January 23, the couple gave the central agency a slip when a team of its officials reached Cherpu to search their house and offices.
