Kerala Couple Abscond After ₹50 Crore Chit Fund Scam in Bengaluru

Speedy Summary

• A couple from Kerala, running a chit fund company in Bengaluru, allegedly fled after cheating over 1,300 investors of ₹50 crore.
• Majority of the investors affected are Keralites.
• The fraud was uncovered when an investor,P.T. Savio, who lost ₹70 lakh in the scheme, reported the case to Ramamurthy Nagar police on July 5.
• Police filed cases under several laws including the Chit Funds Act and sections related to criminal breach of trust and cheating under the Bharatiya Nyaya Sanhita against Tomy A. and his wife Shini Tomy.
• Several complaints surfaced after their office was found locked and their phones were unreachable; to date, police have received 265 formal complaints out of over 1,300 suspected victims.
• Preliminary investigations suggest the couple sold their apartment before fleeing; they had run deposit and chit schemes promising high returns as around 2005 before recently collapsing.

Link for read more: published – July 10, 2025 Source

Indian Opinion Analysis

This alleged financial fraud highlights vulnerability within India’s informal savings mechanisms like chit funds. While these schemes frequently enough attract middle-income investors due to promises of high returns with minimal regulation overheads,they remain highly susceptible to misuse without stringent oversight. the sustained operation from 2005 indicates systemic loopholes that allowed unchecked growth until collapsing catastrophically.The impact is notably severe for Keralite investors entrusting funds across state boundaries while relying on community trust. For Bengaluru authorities coordinating efforts in this cross-regional scam examination-and potentially across multiple jurisdictions-the challenges are daunting but imperative given ongoing public distress.

Stronger enforcement or reforms post cases like these could bolster consumer confidence while highlighting how decades-long operations can unravel due diligence gaps nationwide for urban migrants investing locally but beyond regulatory sightlines diligently guarded!