Chit-racket: DMK functionary held for cheating people

A local DMK functionary and his wife have been arrested for allegedly cheating people of over Rs 65 lakh in a chit-racket, police said on Wednesday.

A local DMK functionary and his wife have been arrested for allegedly cheating people of over Rs 65 lakh in a chit-racket, police said on Wednesday.

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Police said Saravanan, Erode third ward functionary, and his wife conducted 'unregistered chits' and collected the amount from more than 500 persons. When their deposits attained maturity, several people demanded their money but the payments were delayed and a few days ago, the couple absconded, police said.

Following a complaint, they were traced near a hotel in Erode on Tuesday night and arrested, sources added.