Gold Quest MD detained under Goondas Act

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Chennai, May 24 (UNI) Pushpam Appalam Naidu, the Managing Director of Hong Kong-based multi-level marketing firm Gold Quest, which had cheated thousands of depositors to the tune of several crores, was today detained under the Goondas Act.

Pushpam was among the seven members of the company arrested by the police last week and remanded in judicial custody following public outcry against the firm, which had cheated the gullible people by promising gold coins for each deposits.

Chennai City Police Commissioner G Nanchil Kumaran told reporters here that she was detained under the Goondas Act.

He said police were also speeding up the process to extradite the company's Chairman Vijay Eswaran, who had reportedly fled either to Hong Kong or Malaysia.

Quoting investigations, he said the firm had invested about Rs 50 crore in a MNC bank. It had also made investments to the tune of Rs 150 crore in stock market and shares and the police have asked the Securities Exchange Board of India (SEBI) to conduct a probe and freeze the investments.

Mr Kumaran said Gold Quest had also invested in a couple of other financial institutions in Hyderabad and Mumbai and efforts were on to freeze their accounts.

Stating that all steps were being taken to refund the deposits made by thousands of investors in the firm, he said in all police had received more than 17,500 complaints against the company.

The company had cheated Rs 45 crore by collecting money from the public under the MLM scheme, he added.

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