The Economic Offences Wing (EOW) CID recently filed a 50-page chargesheet against Aarudhra Gold Trading Private Limited in the Special Court for Tamil Nadu Protection of Interest of Depositors Act (TNPID Act), 1997. The fraud came to light after over 3,000 complaints, wherein Aarudhra Gold collected funds from more than one lakh depositors that totaled to over Rs 2,438 crore. The company promised exorbitant interest rates but failed to deliver, cheating investors.
The EOW registered a case under several sections of IPC, including 420 (cheating), Banning of Unregulated Deposit Schemes (BUDS) act, and the TNPID Act. A total of 21 persons were booked, and eight top executives of the firm, including the directors—Baskar, Mohanbabu, Senthil Kumar, and Pattabiraman—and managers Rafik, Ayyappan, and two agents, were arrested.
To date, 360 complaints of over Rs 17 crore fraud have been reported. Moreover, following over 1.09 lakh complaints, the EOW will file more than 3,000 pages of additional chargesheet shortly. Recently, two more persons were arrested, including a suspended functionary of Tamil Nadu BJP, K Harish (31), who was one of the directors of the firm.
Hundreds of people approached the police from across the State after realizing they were cheated. The chargesheet seeks to hold the Aarudhra Gold Trading Private Limited accountable for exploiting the public and compromising their interests. The gravity of the charges proves that non-banking firms must be highly regulated and investing with caution is the best approach to avoid losing one’s life savings.
