Rs 7 Cr nidhi scam: KPCC leader arrested in Thrissur

Thrissur: KPCC Secretary and former councillor of Thrissur Corporation, C.S. Sreenivasan, has been arrested in connection with a major investment scam. The arrest was carried out by the District Crime Branch following an investigation into fraudulent activities associated with Heewan Nidhi Limited and Heewan Finance Limited, headquartered in Chakkamukku, Punkunnam.

Sreenivasan, who served as the managing director of the institution, was produced in court and has been remanded for 14 days. This arrest follows the earlier detention of expatriate businessman T.A. Sundar Menon on 4th August. Police have stated that four more individuals are to be arrested in connection with the case.

The complaint alleges that the group, led by Sreenivasan, defrauded investors of more than Rs 7 crore by accepting deposits with the promise of high interest. It is reported that the deposits were accepted in violation of RBI regulations and were not returned even after maturity. Charges have been filed under multiple sections, including fraud and the Banning of Unregulated Deposit Schemes Act (BUDS).

Investigations revealed that the directors of the institutions used the deposits collected from the public to purchase land. Additionally, there are numerous cases involving the non-repayment of loans taken from the institution.

This arrest is part of a broader investigation, with 18 cases registered with the Thrissur West Police. There are currently 62 complainants. The District Crime Branch took over the case after several investors brought the issue to the attention of the Chief Minister. Assets belonging to the accused have been frozen, and confiscation proceedings have been initiated under the BUDS Act. Biju Manikandan, a director of the firm and a native of Puthurkkara, was previously arrested along with Sundar Menon. Both are currently in remand.

The institution, which was established in 2016, has been under scrutiny since April 2023, when depositors began reporting that they had not received their promised returns. Some complainants have stated that they were issued cheques that bounced and were threatened when they demanded their money back.