Madras HC stays FIR registered against film producer K E Gnanavel Raja over alleged chit fund fraud

MADURAI: The Madras high court on Thursday granted interim stay to a FIR that was registered against film producer K E Gnanavel Raja by Ramanathapuram district police over alleged chit fund fraud.
Justice J Nisha Banu passed the interim order while hearing the petition filed by Raja seeking to quash the FIR which was registered against him by the police.
In his petition, Raja stated that he had sold the theatrical rights of his movie 'Magamuni' to a person Neethimani based on an agreement in 2019.
He stated that Neethimani had paid only 2.30 crore and is yet to pay the remaining amount. He stated that he was also taking action in this regard as per film industry practice.
He stated that he came to know that an FIR was registered against Anand, Neethimani and his wife Menaka based on the complaint filed by Thulasimanigandan.
The complainant and 58 others who invested Rs 3 crore in a chit fund business and the same is not being repaid by the trio.
He stated that he was in no way connected with the chit fund business.