Thiruvananthapuram: The chairman and managing director of FarmFed (Southern Green Farming and Marketing Multi State Cooperative Society) have been arrested by Museum police on Sunday, in a major investment fraud case. Chairman Rajesh Pillai and MD Akhin Francis are accused of swindling crores from investors across Kerala.

The case was filed by a woman from Kowadiar who claimed that the duo collected ₹24.5 lakh from her as an investment and later failed to return the amount or pay interest. The accused allegedly promised high returns and misused the trust of investors by falsely claiming government approval.

According to the police, two cheating cases have been registered in Kerala against the pair, and it is believed that around ₹250 crore was siphoned from 16 branches of the society. Rajesh is the first accused, and Akhin is the second in the case filed at the Museum police station. Board members Dhanya, Shiny, and Mahavishnu have also been named in the chargesheet.

FarmFed, registered under the Ministry of Cooperation, collected funds by offering an interest rate of 12.5 per cent. Only ten depositors from the Shasthamangalam branch in Thiruvananthapuram have come forward to file complaints so far, though more victims are suspected in districts like Thrissur and Palakkad.

The complainant, a homemaker, said a FarmFed staff member frequently visited her home and convinced her that the central government backed the firm. She became suspicious when she didn’t receive interest payments after three months. When she visited the branch, she found other investors also demanding their money back. Though officials assured repayment, the woman filed a police complaint after no action was taken.

FarmFed, which was launched in 2008 to promote agriculture and provide loans to farmers, reportedly violated regulations by attracting investments with promises of high returns. The firm had assets worth ₹390 crore two years ago before its sudden collapse. Police also said celebrities were used in advertisements to build credibility.