Bangalore:
The Central crime branch (CCB) investigators have arrested S Madhav, MD, Bellary Steel and Alloy Company for cheating hundreds of people worth Rs 2 crore, promising high returns for their dividends. Madhav had floated a new company, SS Finance to lure gullible investors.
Madhav, in collusion with former deputy manager of State Bank of India S Pattabhiraman opened branches in Bangalore and other parts of the state offering 15 to 20 per cent returns for the investments.
The duo managed to collect around Rs 2 crore from 300 depositors within two years with an assurance them shares in his multi-crore steel company.
Madhav siphoned off the money soon after incurring a huge loss in the steel business and neither returned the interest or the principle amount.
Based on a complaint by three of the depositors -- PP Bendre, Bhadrappa Hakki and Muralidharan, the CCB police on Wednesday raided Madhav's house in Indiranagar and confiscated his properties including three houses in Indiranagar and Bellary. "Some property documents, three cars, electronic goods and computers were also seized from the house," an official said.
The CCB officials had arrested AS Patabhiraman, and remanded him to judicial custody, but he was later released on bail. The case has been handed over to the jurisdictional Indiranagar police, who are further investigating.