Karnataka - Others   

The lure of lucre lands them in trouble

Staff Correspondent

Kolar: Getting panicky after a private finance company, headquartered at Chintamani in Kolar district, did not return their money, hundreds of depositors have started approaching the police to get their money back.

The bouncing of two cheques for Rs. 6 lakh issued by the company heightened the concern among the people.

The company had branches at Kolar, Mulbagal, Chickballapur, Peresandra Sidlaghatta, Bagepalli, Gowribidnur, Alipur and Srinivaspur. The proprietor of the company had appointed representatives at these places to collect money for the schemes, where two-wheelers were assured for the lucky winners.

According to an estimate, there were about 500 subscribers in the district contributing Rs. 600 per month. Besides the lucky draw scheme, the firm was collecting deposits too promising 24 per cent interest per annum, which is against RBI norms.

Lured by the high returns, hundreds of people invested lakhs of rupees in the company. The people became suspicious when the company stopped conducting the lucky draw. It also refused to return the people's money. The company gave two cheques to two persons of Kolar and the cheques bounced.

The town police have taken into custody one person in this connection.

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