Click to play videoBangalore: Bangalore-based investment firm, InvesTech first lured 4,000 investors with great returns and then duped them of an estimated Rs 400 crore.
In May 2004, InvesTech offered investors a handsome 120 per cent on their deposits. At the time the stock markets were in the doldrums, InvesTech's offer seemed like the stuff dreams are made of.
Investors encashed their fixed deposits, savings certificates and some even borrowed from banks.
"I invested about Rs 10 lakh. The firm said that if you want, you can take returns month after month, otherwise the money would double in six months. I never thought he is going to cheat me one fine day," says investor, Mythili.
Suresh Krishnamurthy, the man behind the scam and the owner of InvesTech, also floated five more fake companies, till an Income Tax raid in July last year sullied his plans.
The investors who had their money invested in his firms tried to bail him out because they saw their money, and in many cases, their future, linked to his fate.
Then suddenly, Krishnamurthy disappeared. A few investors approached the Consumer Forum and obtained a decree.
They got back some of their money after his assets were liquidated. But investors want to know what happened to the rest of the money.
President, Investors' Association, Seshadri says, "Twelve cheques amounting to Rs 2.33 crores were in the hands of the police authorities, at the commissioner's level, that is what I can say. And the court had also directed the commissioner and the ACP to hand it over, encash it and deposit it with the court. We are sure that has not been done and we want to know the fate of that transaction."
The police say that the money has been deposited, but the court is yet to receive the amount.
Additional Commissioner of Police, Gopal Hosur says, "The customers and this company had some agreement of returning the money. As far as my knowledge goes, about Rs 3 crore of investment has been returned to some of the people."
Although that might be true, most of the investors are still waiting for their due.The Consumer Court has given Krishnamurthy time up to July 19 to return the money. But now he is missing.
Even so, more than 150 complaints of fraud have been registered in various police stations in Bangalore and investors now wish this was one offer they should have turned down.
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