Kerala couple accused of chit fund fraud seek quashing of case in Bengaluru High Court
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A Kerala-based couple accused of duping nearly 600 investors through a chit fund operation in Bengaluru has approached the Karnataka High Court seeking to quash the police investigation against them.
Tomy A Varghese (57) and his wife Shini Tomy (52) are at the centre of a high-profile financial fraud case involving over Rs 40 crore.
The couple, who ran A&A Chit Funds and Finance in East Bengaluru since 2005, allegedly fled to Kenya on July 3, two days before a First Information Report (FIR) was registered against them.
On July 25, the Karnataka High Court granted the state police time to file objections to the couple’s plea. The petition seeks the quashing of the FIR filed at Ramamurthy Nagar police station on July 5 and requests an interim stay on the investigation by the Criminal Investigation Department (CID).
According to police officials, the couple sold their apartment and cars at significantly reduced prices before leaving India.
“The travel history shows that they fled to Kenya on July 3, two days before an FIR was registered. The investigations have shown they sold all their property – apartment and car – for half the price before escaping, which shows that they intended to cheat. We have analysed their bank statements and documents,” a jurisdictional police officer said.
The case was filed following a complaint by 64-year-old investor P T Savio, who claimed he was defrauded of Rs 70 lakh. Investigations so far have identified 368 victims, with a collective loss estimated at Rs 39.66 crore.
The FIR has been registered under Section 4 of the Chit Funds Act, 1982, Section 21 of the Banning of Unregulated Deposit Schemes Ordinance, 2019, and Sections 318 and 316 of the Bharatiya Nyaya Sanhita, pertaining to cheating and criminal breach of trust.
Police reports suggest the couple operated the chit fund business for nearly two decades, attracting investors by promising returns between 6% and 14%.
The case has drawn significant public attention, and authorities are continuing efforts to trace the couple’s whereabouts and investigate the full extent of the alleged fraud.