10 arrested in Vellore-based financial firm scam

The Economic Offences Wing (EOW) has arrested 10 persons so far in connection with a scam involving Vellore-based LNS International Financial Services, where the company cheated over 5046 depositors and swindled ₹800 crore.

The EOW registered a case against the dysfunctional financial firm, its sister concerns, and the directors and administrators of the firms, based on the depositors’ complaints.

The depositors alleged that the directors and administrators had assured them of investing in share market and getting high returns— ranging from 6% to 10% per month — and collected unregulated deposit money from the public.

As of now, 5,046 complaints have been received and the defaulted amount stands at ₹800 crore.

A preliminary chargesheet was filed in the court. Further investigation is on.

The EOW said properties worth ₹272 crore, bought using the ill-gotten money, were identified during searches conducted in 35 premises. Cash, gold jewels, silver articles, four wheelers and two-wheelers were also recovered.

A total of 791 bank accounts, three shares of the accused and companies worth ₹121.6 crore were frozen. So far, 748 immovable property documents worth ₹143 crore (guideline value) have been identified for attachment.

Out of the 25 accused, six are companies and 19 individuals. 10 persons have been arrested so far, the EOW said.