Bengaluru chit-fund scam: How couple duped 400+ investors of ₹40cr
What's the story
A Kerala couple has been accused of defrauding over 400 investors in Bengaluru through a massive chit fund scam. The duo, Tomy A Varghese (57) and Shini Tomy (52) from Alappuzha, duped the investors of nearly ₹40 crore before fleeing to Kenya via Mumbai on July 3 using tourist visas. The police are now investigating their financial transactions and bank details as part of the ongoing investigation.
Scam details
The couple ran A&A Chits and Finance
The couple ran A&A Chits and Finance in East Bengaluru for about 25 years, promising investors returns of 15-20%. A chit fund is a savings scheme where a group contributes a fixed amount every month. One member gets the full amount every month, either through an auction or a lucky draw. Initially, Tomy and Shini paid returns on time, gaining people's trust and encouraging them to invest larger sums of money.
Trust breached
How the couple stopped giving returns
The couple's timely payments initially led to more people investing larger amounts of money, some even selling their homes. However, they eventually stopped giving returns and disappeared without a trace during the city's "Royal Challengers Bengaluru (RCB) victory celebrations." The police have registered a criminal case against them under BNS 318, 317, the Chit Funds Act of 1982, and various sections of the BUDS Act (Banning of Unregulated Deposit Schemes Act, 2019).
Investor impact
Devastated investors share their experiences
Devastated investors have shared their experiences of how the accused family vanished. One victim, Navina, said they absconded during the RCB victory celebrations. She added that despite their efforts, the situation remains uncertain as properties are being attached due to loans. Another investor who had known the family for nearly 30 years revealed he invested ₹30 lakh and sought help from DK Shivakumar and the home minister.