More than 3,000 complain against arrested VGN Jewellers owners of cheating to the tune of Rs90 crore

The number of complainants against the owners of the VGN Jewellers chain has crossed 3,000 in less than two months of being arrested; the value of the money that is alleged to have been swindled by cheating them has gone beyond ₹90Cr, investigating officers say

The number of complainants against the owners of the VGN Jewellers chain has crossed 3,000 in less than two months of their arrest. The value of the money that is alleged to have been swindled by them has gone beyond ₹90Cr, investigating officers said on Saturday.

In less than two months of being arrested, the VGN Jewellers owners have more than 3,000 complaining against them for cheating to the tune of Rs90 crore. (HT FILE)

The accused, Virithgopalan Nair and his wife Valsala, were arrested on October 5 by the Economic Offences Wing (EOW) of the Thane Police Crime Branch for allegedly running a Ponzi scheme.

Initially, 13 people from all over the Thane district had registered complaints with the Kolsewadi police station in Kalyan, alleging that they had collectively been cheated to the tune of ₹7.99Cr. The EOW had subsequently taken over the probe and arrested the couple.

“We are still conducting further investigations into the matter. In the meantime, we have now recorded statements from more than 3,000 people who have all been cheated by the accused. The total value of the money that the accused have fraudulently obtained from the victims is more than ₹90Cr. A large number of the victims are senior citizens with many being above 75 years,” ACP (EOW), SN Patil, said.

Following the arrest of the accused, the EOW had instructed all police stations in the Thane city commissionerate to direct any and all pertinent complaints to them. People who were reaching out through social media were also contacted and asked to register formal complaints.

According to the EOW officials, from 2006 to 2021, the accused lured their customers into investing money in a variety of schemes promising impossibly high returns. The accused had jewellery stores in Dombivli, Ulhasnagar and Mulund as well as a finance company in Kalyan, which were all allegedly used in the offence and the accused allegedly used the money received from new investors to pay the old ones.

The EOW has invoked the Maharashtra Protection of Interests of Depositors Act in the case, which empowers the investigating agency to attach the assets of the accused. These assets, with due permission from the court, are auctioned off and the proceeds are used to reimburse the victims.

“We have already started the process of evaluating the movable as well as immovable assets of the accused, and will take further action in this regard soon,” Patil said.