Chennai Jewelery Store Kerala Fashion Jewelery cheats hundreds of gold deposits, 2 arrested
Two promoters of the famous Kerala Fashion Jewelery (KFJ) brand have been arrested in Chennai for allegedly defrauding deposits of 26 crore made by at least 1,689 customers under various gold buying programs between 2016 and 2019.
Brothers Sujith Cherian, managing director, and Sunil Cherian, managing director, were denied bail by the special court under protection of the interests of depositors in Tamil Nadu.
“Yes, we arrested them both. The court denied them bail. In 2019, the police filed a complaint for cheating, criminal conspiracy, criminal breach of trust and incitement to deliver goods,” said Suresh, DSP, Economic Offenses Wing. NDTV confirming development.
There is hope that this could pave the way for some kind of recovery.
Sridevi Ramakrishnan, during an emergency in 2016, pledged 312 grams of gold for a 5.4 lakh loan under the KFJ gold lending program.
Although she repaid the loan, she only managed to recover 15 grams of gold. âThey promised to fix the problem with the proceeds from the sale of their property, but nothing happened,â Ms. Ramakrishnan said. The plans were approved by actor Praksh Raj and actor-director Lakshmi Ramakrishnan.
Jiji Mathew, an IT professional, had deposited a total of Rs 5.7 lakh since 2017, paying Rs 25,000 per month as part of a program that would lock in gold at the lowest price. âI was hoping the Gold Savings Token Program would help my daughter’s higher education. But they closed in 2019 and our plans fell apart,â he said.
“The arrest was long overdue as they were only buying time in the name of the negotiations. There are hundreds of people suffering in silence. At least now the authorities should freeze their properties and begin recovery.”
S Lingasamy, a civil engineer who had filed the first complaint, had joined a five-year program to buy 100 grams of gold at Rs 1,999. One gram had then lost two lakh rupees in this one program. He had also made another investment. The appreciation of the price of gold would, he thought, help the education of his children.
“The mother of the brothers and the wife of one of them are also directors of the KFJ. Why haven’t the police arrested them?” He asked.
The Cherian brothers, in an affidavit, blamed it on a bogus special interest campaign, which they say triggered a massive withdrawal of deposits and consequently led to the closure of their gold stores.
Although they asked for a bond to settle the depositors by disposing of their mortgaged properties, the court denied it, citing the possibility of âtampering with evidenceâ.
The prosecution claimed the brothers embezzled funds to Benamis and friends.