Police took action based on the complaint by a man from neighbouring village. (Representational)
A 65-year old chit fund owner has been arrested for allegedly cheating around 1,000 investors of about Rs 4 crore, a police official said on Friday.
Thyagarajan was arrested on Thursday from Vellore in Tamil Nadu from where he was operating the chit fund, senior superintendent of police(Crime and Investigation) Mahesh Kumar Barnwal told reporters here.
He had lured investors promising high rate of interest but neither paid it nor returned the deposit amount.
Around 1,000 people had deposited their money in the firm which evaded payment of the interest and the principal amount totalling Rs 4 crore, the police official said.
Police took action based on the complaint by a man from neighbouring Velrampet village that he had invested Rs 11.18 lakh with the firm but did not get his money back, he said.