Police raid offices of non-financial firm
Kochi, May 10 (UNI) Police today simultaneously raided the offices of a non-financial institution named LIS at Ernakulam and Kollam, engaged in money circulation and deposit mobilisation schemes allegedly violating the norms and restrained it from accepting deposits from the public from tomorrow.
Heavy posse of police personnel led by Inspector-General T P Senkumar carried out the day-long raids at the administrative office of LIS which has reportedly collected deposits to the tune of crores of rupees, aided with blitzy advertisement campaign.
Mr Senkumar said the company registered as a public charitable trust had no powers to accept deposits and engage in money circulation schemes.
The company had violated the norms and police booked cases for cheating and under various clauses of the Kerala Money Lending Act and Money Circulation Act.
The scheme of the company squarely fell within the definition of the Money Circulation Act whereas it had no legal right to do so,'' he said.
With the registered office in Bangalore and having branch offices across the country, the company is learnt to have accepted deposits from lakhs of customers to the tune of crores of rupees.
Police examined the documents to study the legal sides and would file the FIR in a couple of days, the police officials including the DIG and the City Commissioner said after the raids. However no arrest had been made and the directors of the company were also not present.
The company worked almost like a money-chain and invested a portion of the deposits into lottery trade, offering 100 per cent returns in a stipulated period, according its leaflets.
UNI JA DK1800