Popular Finance scam: Bengaluru investors approach police

After the scam concerning Kerala-based Popular Finance became public and hundreds there lodged complaints against its managing director and other officials, investors in Bengaluru have also approached the police.

Prem Kumar (71), a retired private firm employee and a resident of Mutyala Nagar, said in his complaint that he and his family members invested Rs 31 lakh in the firm and got cheated. He named managing director Thomas Daniel and T K Koshy, the manager of the Mathikere branch on the HMT Main Road in Yeshwanthpur. The firm is into gold loan and finance.

A few years ago, Prem learnt about the firm through his friends and met Koshy to get more details. Koshy told him that the firm finances people in need besides taking investments from people and give 12% interest.

Prem invested Rs 15 lakh in three instalments. As a surety, the firm gave him three bonds and was also paying interest on his money as promised. He renewed the bonds in 2019. His family members, including his elder and younger daughters and their two children, also invested in the firm.

On August 28, Prem was in need of money and had approached the firm to get back the money he invested. He was asked to come the next day, but the company was locked, and a notice stated that it would remain closed until September 5 due to festival.

By then, Prem had seen the news that the firm’s branches had been closed across Kerala and was facing complaints from several investors. Prem contacted Koshy, who assured him that he would visit the head office in Pathanamthitta district and would get back to him. Later, however, his phone was switched off.

An investigating officer from Yeshwanthpur police station said Prem had filed a complaint on Tuesday. Many people who have invested in the firm have come forward to file complaints.

"When we contacted manager Koshy, we learnt that he tested positive for covid-19 and is taking treatment. Once he recovers, we will interrogate him and take necessary action,” the officer said.