Konni, Aug 27: Investors may lose around Rs 2,000 after the owners of Kerala’s Popular Finance shut down the firm and went underground.
With the increasing number of complaints against the firm and its owners, a special team has been appointed to investigate the matter. However, the owner filed an insolvency petition in the court the other day.
Popular Finance had 274 branches inside and outside. Though the company had been working well, a sudden financial crisis led to its collapse.
The company was owned by Roy (Thomas) Daniel, his wife Prabha and their family residing in Vakayar. Two weeks ago, the family shut the company’s registered office in Vakayar and went absconding. Based on complaints from the investors, Konni police registered a cheating case against Roy and Prabha. It is learned that the company owes money to over 1,500 people including NRIs.
As the registered office was closed, investors started reaching other branches demanding their money back. Following this, the other branches are also being closed down. K G Simon pointed out that the firm does not have the resources to return all the money to the investors. More investigations are being held into other firms owned by the family.
People had invested between Rs 10,000 and Rs 80,000 in the company. Most of them made the investments for constructing houses, for marriage and to earn income after retirement. The investors said that they were paid interests properly until last month.
Those who deposited smaller amounts in the company raised complaints first. Many of those who have invested huge sums in the firm are yet to register complaints. Police have received proof that the company was not functioning properly for the last four years.
Alerts have been sounded in airports to prevent the owners from escaping to foreign countries. Konni CI P. S. Rajesh is in charge of the investigation. Popular Finance was founded in 1965 by T. K Daniel, father of Roy.
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