M Srinivas, B G Pushpalatha ran Shreyas Groups.
By Dileep Thekkethil
The escape plan of a Bengaluru couple was botched by the local Jayanagar police after both were arrested for cheating investors in what has transpired to be a multi-crore fraud.
According to the police, M Srinivas (63) and his wife B G Pushpalatha (55) from Koodlu, were arrested near Electronic City on Saturday after they decided to flee the city, closing down their financial establishment located in Jayanagar 5th Block.
The alleged fraud came to light after investors filed a complaint accusing Srinivas and Pushpalatha, who were running a financial company Shreyas Groups, of fraud. The company, which started its operations in 1988, was registered under the Karnataka Co-operative Societies Act.
Shreyas Groups is an umbrella company associated with Shreyas Finance & Investments, Shreyas Chits, and Shreyas Souharda Co-operative Limited, which were started by the couple’s son and daughter-in-law.
According to the police, the couple offered investment plans to clients promising them high-interest rates, but the company faced a massive setback as the money invested in shares and real estate depreciated irrevocably.
When customers who were lured by lucrative investment plans returned to the office to collect their dividends, they were disillusioned to find the establishment closed without any prior notice, said the police.
They also added that the exact amount people invested in Shreyas Groups is yet to be calculated, but they estimate an investment of not less than Rs. 100 crores. As of now, three investors have filed a complaint against the company for cheating them for investments above Rs. 10 crores.
As many as 40 investors turned up to the police station on Tuesday to register a complaint against the couple and more are expected to line up outside the police station in the coming days.