Udupi: Multi-crore Fraud Exposed - Firm Accused of Cheating Hundreds

Daijiworld Media Network – Udupi (SP)

Udupi, Jun 11: The district police have received complaints that a firm, conducting financial dealings, which functions in the name, 'Adithya Bio Confirm' at Court Road here, has defrauded people by not refunding deposits accepted from them as per commitment. It is said that about 350 people have been fleeced in this manner.

Vighneshwara Aithal, who was running the firm, surrendered at the office of the district superintendent of police (SP) here on Friday June 10. He could not be taken into custody, as there was no formal complaint against him. Till Friday night, no case was officially registered. The amount of fraud is put at 25 to 40 crore rupees. It is suspected that investments were also collected from various parts of the state by the firm.

It is gathered that the accused told the depositors that he could multiply their investments by pooling the money in share dealings. Some of the depositors said that the cheques issued by the firm’s owner towards monthly repayment of their deposits were being dishonoured by banks since the last three to four months. The affected persons, it is learnt, have decided to carry on their fight to get their money back, unitedly. Norbert, one of the investors from Shankarpura, said that about 150 affected persons have complained to the police in this regard.

The firm had started operations in August 2010. Aithal, in addition to conducting the finance business, was also engaged in selling of Ayurvedic preparations. He is learnt to have promised the investors to pay Rs 1,000 per month for every Rs 10,000 invested with him. The SP said that a formal complaint will be registered once the complainants file complaints duly furnishing documents supporting their claim. In all likelihood, the depositors will submit complaints at town police station here on Saturday June 11.