Popular Finance defraud Rs 600 crore in the Konni location, which includes the finance corporation’s head workplace in Vakayar, the police have said. They were given the facts whilst amassing information of frauds dedicated at numerous branches of the company.The police have come to realize that some of the pinnacle officers of the enterprise are in Bengaluru. They have now commenced an investigation that specialize in these officers.In 2014, the Reserve Bank had taken movement against Popular Finance and banned the company from accepting deposits in violation of the primary bank’s regulations.The corporation, however, hid this truth and gathered crores of rupees in deposits. They even opened new branches throughout the u . S . A .. It then diverted the money.
The Crime Branch had filed a case against Popular Finance for accepting the deposits illegally. The case is in High Court, but the agency has been extending it for 6 years via acquiring live orders.Popular Finance may also face movement for issuing bonds without the permission of the capital markets regulator Securities and Exchange Board of India (SEBI). The bond changed into issued in the name of San Popular without any felony safety with the promise of doubling investments in five years.The business enterprise additionally added traders to any other scheme that claimed to double investments in seven years. Most of the sufferers of this scheme are people who had been collecting cash for marriage and different functions.
A bankruptcy petition filed via Popular Finance proprietor Thomas Daniel alleged that fraud by means of department managers had ended in economic loss. The petition also admits that there has been economic mismanagement inside the enterprise.A total of eight financial disaster petitions were filed in the sub-court docket on behalf of various entities below Popular Finance, along with Popular Exports, Popular Dealers, Managing Partner Thomas Daniel, Popular Mini Finance and Popular Printers, except Popular Finance itself.The respondents inside the petitions are the business enterprise’s 50,000 buyers.