2 teams set up to hunt fraudster

The Girinagar police have constituted two separate teams to trace the owner of a private financial institution who absconded with Rs 15 crore of his investors.

The police have arrested two associates of the prime suspect Yellappa and Manjunath and are searching for K P Dharmaraj.

Dharmaraj launched a private financial institution recently, announced attractive weekly interests, collected Rs 15 crore and vanished later. The police registered a case against him based on a complaint and launched a search operation.

Dharmaraj recently quit his job with a trading firm and launched his institution and made announcements. He announced Rs 4,000 interest per week for Rs 1 lakh investment and twice the amount invested for 50 weeks continuously. Initially, locals were hesitant to invest with his firm, but he was prompt in giving the interest. Within no time, a large number of people invested up to Rs 15 crore, said the police.

He invested Rs 15 crore in trading and lost it. He collected whatever that was remaining, locked the office and absconded, said the police.