Another Ponzi fraud surfaces, in Bengaluru
It is said that the investors were promised exorbitant interest rates on their investments.
Bengaluru: Hundreds of investors protested in front of the Kanva Souharda Credit Cooperative Society Ltd office on West of Chord Road in Rajajinagar on Friday, alleging cheating.
It is said that the investors were promised exorbitant interest rates on their investments. But over the last few months, the investors have either not got any returns or got them very late, the police said.
When the investors, who were scared of losing their principle amount, gathered and protested in front of the cooperative society office, Basaveshwaranagar police rushed to the spot and controlled the situation.
Ten complaints were filed against the company. Many investors returned home after cooperative society representatives spoke to them. The police said that the company offered 12.5% of interest on investments, but had not paid the investors over the last three months. The customers were given excuses and assurances that they would be paid.
The company also offered to double the investment in five years.
DCP Ramesh Banoth said that the cases have been registered and management heads being questioned.