Business · India Bureau
Three arrested for ₹100 crore loan fraud scheme in Chennai
Police in Chennai have arrested three individuals accused of defrauding the public of approximately ₹100 crore through a bogus business loan scheme. The accused allegedly targeted victims by promising secured industrial loans in exchange for advance service fees.
LSN India ·
Authorities in Chennai have arrested three suspects in connection with an elaborate loan fraud operation that allegedly victimized multiple individuals seeking business financing. According to police records, the accused employed a deceptive scheme targeting entrepreneurs and business owners seeking capital for industrial ventures.
The trio is accused of luring victims by offering to facilitate business loans for industrial development purposes. The scheme operated by requesting advance payments from applicants, which the accused claimed would serve as service or processing fees for loan facilitation. Police say the accused would then disappear with the collected funds without providing any actual loan assistance.
One identified victim in the case, Manivannan, fell prey to the scheme after approaching the accused seeking a business loan. The accused promised to secure financing in exchange for an upfront payment, following a pattern that authorities believe was replicated across multiple cases.
The arrests represent the culmination of a police investigation into the widespread fraud network. Investigators have recovered documentation related to the scheme and are continuing efforts to identify additional victims and recover funds. The case underscores the risks faced by business owners seeking loans through unofficial channels.