# Ajayan
Kochi | Official indifference to taking timely action has resulted in over 1.6 crore individuals falling victim to a colossal money chain fraud exceeding Rs 1630 crore in what can be deemed as the most significant financial scam in Kerala. Thrissur-based Highrich Online Shoppe Pvt Ltd, masquerading as a multi-level marketing entity, was granted an undue duration to divert its funds, despite the official filing of complaints to the police as early as June 2023.
While the arrest of company director Prathapan KD was in early December 2023, subsequent actions by the authorities have been conspicuously limited. Incidentally, the arrest was by the GST intelligence wing for alleged tax evasion to the tune of Rs 125 crore. A fortnight after a direction was issued to attach the company properties, the Thrissur District Collector issued the order to freeze the bank accounts and attach the properties. Sources suggest that additional arrests might be imminent, potentially prompting the defrauded individuals to file complaints. This impending development could, in turn, agitate the situation further, unraveling a complex web of deceit and discontent.
Former Superintendent of Police PA Valsan, renowned for actively combating numerous money chain frauds during his tenure, revealed to Metro Vaartha that, though he was no longer in service, he diligently monitored the unfolding fraud. On June 28, 2023, he filed a complaint with the top police official of Cherpu station. However, Valsan expressed his dismay, noting that the response he received from his former colleagues was both disparaging and disillusioning.
Valsan took further action by filing a petition as a de facto complainant before the additional district and sessions court, listing Prathapan and his wife Sreena as respondents. He emphasized that Prathapan had a history of involvement in 14 fraud cases, citing a prior arrest in 2016 in connection with fraudulent activities related to another company he owned, named Greenco Securities.
Valsan underscored that the company's website featured numerous promotional classes aimed at inspiring business pursuits. These sessions included detailed charts and diagrams outlining the profit-sharing models, while senior leaders of the company openly endorsed various money chain schemes. He expressed concern over the lack of action taken by the investigation officer to seize or seal the website, a crucial piece of evidence. He also highlighted the potential consequences of tampering with the server and backup data, emphasizing that such actions could significantly impede the establishment of the accused's culpability and jeopardize the prospects of a successful prosecution.
Valsan also drew attention to specific circulars issued by the police headquarters, which mandated that all fraud cases surpassing the magnitude of Rs 5 crore should be transferred to the State Crime Branch.
He said that, as of now, he had not been contacted nor his statement recorded. He mentioned that he had sent a letter to the State Director General of Police, shedding light on potential collaborations between police officers and individuals involved in money chain fraud and requested corrective measures to address these machinations.
Ironically, cases were initially filed under the Chitty Act, where the penalties were relatively meagre. However, eventually, the authorities invoked the Banning of Unregulated Deposit Scheme (BUDS) Act, which came into force in Kerala in 2021.
Former legislator Anil Akkara, known for leading investigations into frauds such as those in Life Mission and the Karuvannur Cooperative Bank, revealed to Metro Vaartha that he had been inundated with calls from individuals who had invested their hard-earned savings in this Ponzi scheme. In one instance, a former bank official and his relatives had invested over Rs 50 lakhs, received after retirement, in this company as they were enticed by the attractive profits through a bond scheme which again was illegal. They continued receiving weekly interest payments until the arrest of Prathapan and now acknowledge the fear that they might lose all their money. He accused the authorities of giving the company directors enough time to divert their funds.
Operating under the guise of selling miscellaneous products, the company was involved in a money chain business. According to its claims, it boasted of 78 branches in Kerala and over 675 shops nationwide. They had also entered the OTT business. Notably, the company had various associate entities, some of which were engaged in cryptocurrency dealings. An apprehension raised by Akkara is that a significant portion of the funds might have been channeled into this cryptocurrency business. A proper probe could cross the borders of the State and the country.
With a substantial portion of the funds being siphoned off, along with the settlement of evaded GST and the attachment of properties, Akkara expresses concern that there may be little remaining for the investors to recover. He further suggests that a comprehensive investigation could potentially unveil the extent to which the company director contributed to the recently held State Government’s Keraleeyam initiative.