City police arrest two for cheating following HC order

Chennai, Mar 13 (UNI) On the orders of Madras High court, the city police today arrested two Directors of the Kasi Housing Development Limited on charges of cheating a consumer.

On the orders passed by Mr Justice M Jayapal, the Ashok Nagar police arrested the Directors, Mr Mathivathanan and Mr M Sampath for failing to allot a flat to one Dr V Sekar, after collecting money from him.

The two Directors were produced before the consumer-forum, south, this evening and remanded to 15 days judicial custody.

Dr Sekar, in his petition said he joined a scheme announced by Kasi Housing, under which one could avail a flat by paying a monthly instalment of Rs 6,000 for 100 months.

He said he had paid Rs 4.35 lakh for 67 months, upto 2002, but the company, after issuing allotment order, failed to allot him a flat.

When he moved the Consumer forum, south, seeking redressal, the forum had in 2005, directed the company to repay him the money with 12 per cent interest. However, the company neither repaid the money, nor allotted the flat.

When he moved the forum again, it had issued an arrest warrant against the Directors of the company, but the city police refused to execute the order, saying it was a civil matter and they would not interfere.

Following this, Dr Sekar filed a petition before Madras High court. Passing orders on the petition, Mr Justice K Jayapal directed the city police to execute the arrest warrant passed by the Consumer forum.

UNI XR/WS RSA RAI2104