More than 100 people from 16 hamlets in Panamarathupatti panchayat union thronged the SP office Thursday with complaints that a herbal farm owner had cheated them to the tune of more than Rs 150 crores, after promising “double return” for their deposits.
Salem SP Ashwin Kotnis said his office received about 250 complaints against farm owner B . Jagadeesan, 42, of Kollimalai in Namakkal district and that crime branch had been asked to investigate.
District councillor A.B. Manikandan said Jagadeesan after setting up his “Zenith Herbal Farm”, promised people 12 per cent interest on their deposits.
He later modified the deposit scheme and provided attractive returns. For those who deposited Rs 1 lakh, he paid a monthly return of Rs 10,000 and at the end of ten months, he returned the deposit amount of `1 lakh also.
When he announced double the money in 30 days for a deposit `5 lakh, more people fell into his trap.
Jagadeesan had issued cheques to many, but they bounced. It was at this stage that he shut shop and absconded.