Court grants 9-day police custody for Fine Futures MDs

COIMBATORE: M Vivek and S Senthilkumar, managing directors of Fine Future India, an online multilevel marketing firm and M Nithyanandam, 22, younger brother of Vivek, were produced before judge MP Subramanian (in charge - TNPID court) on Thursday evening.
The Economic Offences Wing (EOW), Coimbatore unit demanded ten days of police custody. But the court has granted police custody for nine days till March 15.
Sleuths from EOW have arrested the managing directors and Nithyanandam from luxury villas at Palavakkam in Kacheepuram district on Wednesday evening.
They were taken to Coimbatore on wee hours of Friday and produced before the court. The judge asked them if they wanted to say anything before the court. The trio replied that they don't have anything to say.
According to a source, Vivek and Senthilkumar took two villas and paid Rs 55,000 as monthly rent for each. They kept four and a half kilos of gold ornaments in the villas. The special team from EOW traced the managing directors and conducted a surprise check at the villas. The sleuths have seized Rs 50 lakh from the house.
The source added that the sleuths have seized diamonds, precious stones and gems. Properties worth more than Rs 70 crore have been identified and the sleuths have planned to attach the documents. The police plan to arrest two benami and 15 others who involved in the case.
The firm had collected Rs 818 crore from 1.72 lakh investors in Western Tamil Nadu. The managing directors had promised the investors a monthly payment of Rs 850 for 60 months for an investment of Rs 10,000 which would be returned at the end of the tenure.
Agents were also promised Rs 2,000 as commission for every investment of Rs 1 lakh. Initially, the firm paid investors the promised returns and even encouraged many investors to become agents, promising them commission on sales. Lured by the hefty commission, many investors became agents spreading the word among relatives and neighbours.
Initially, the district crime branch (DCB) dealt with the case and registered an FIR against Fine Future managing directors Vivek and Senthilkumar, Mohan, an agent from Somanur and others under section 120 (b) (criminal conspiracy), 406 (breach of trust), 420 (cheating and dishonestly inducing delivery of property) and under section 4, 5, 6 of Prize Chit and Money Circulation (Banning) Scheme Act, 1978 on November 28, 2012. The complaint was lodged by R Vadivel, 25 of Samichettipalayam.
The DCB inspector K Balamurugan had identified the properties of the managing directors and seized a luxury car belonged to Vivek.
Recently, the case was transferred to EOW, Coimbatore unit.