Massive Rs 6,000 Crore Scam Unearthed in Tamil Nadu, Leaving Depositors in Despair

In a shocking revelation, a colossal scam amounting to Rs 6,000 crore has come to light, shaking Tamil Nadu’s financial landscape. LNS International Financial Services (IFS), headquartered in Vellore, stands accused of orchestrating an elaborate scam that has left over 79,000 depositors fearing the loss of their hard-earned money.

The alleged scam revolves around the company’s dubious promise of up to Rs 8,000 in monthly interest for every Rs 1 lakh deposited. Exploiting the trust of investors, LNS IFS appointed over 10,000 ‘agents’ across the state, strategically positioned to lure victims into their trap.

At the center of this scandal are the absconding promoters, including Lakshminarayanan Sundaram, Sundaram Vedhanarayanan, Sundaram Bakthavatchalam from Vellore, and individuals named Gajendran of Vyasarpadi and Vivek of Erode. Despite the Economic Offences Wing’s (EOW) extensive efforts, including a raid at 21 locations, these individuals remain at large, leaving countless depositors on the brink of a staggering collective loss.

The EOW’s raid yielded a significant haul of evidence, including 247 documents, 56 laptops, 16 computers, 15 mobile phones, 40 sovereigns of gold jewelry, a car, and Rs 1.05 crore in cash. This operation spanned Chennai, Tiruvallur, Kancheepuram, Vellore, Ranipet, Erode, and Coimbatore.

The perpetrators reportedly established multiple firms, such as Marc Opportunity Development Limited in Katpadi, Comtantius Corporate Business Services in Mylapore, Accordience Business Service in Katpadi, and Arles Maxent Associates, operating out of Chennai’s Olympia Tower. These entities were used to collect deposits worth crores from unsuspecting victims, leaving authorities dumbfounded by the audacity and scale of the scam.

The fraudsters executed their scheme by organizing gatherings for potential depositors and agents, leveraging claims of Lakshminarayanan Sundaram’s expertise in share broking and trading to attract substantial investments. The true nature of the scam only emerged when the Madras High Court intervened following a plea by a victim, P Karthik. This pivotal intervention compelled the police to initiate action against the perpetrators.

Alarmingly, even several hundred police personnel fell victim to this elaborate deception, prompting the State Director-General of Police, C Sylendra Babu, to issue a cautionary advisory. While the EOW has registered a case in connection with the scam, arrests are yet to be made, leaving depositors in a state of anxiety and uncertainty.

As the investigation unfolds, it is becoming increasingly evident that this sprawling scam has left a trail of devastation in its wake, impacting the lives of numerous innocent depositors. The scale of this Rs 6,000 crore scam underscores the urgent need for stricter financial regulations and heightened awareness among potential investors to thwart such fraudulent schemes in the future. If you or someone you know may have been affected by this scam, please reach out to the Economic Offences Wing at ‘[email protected]‘ to report your case.
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