A couple hailing from Kerala and residing in Bengaluru has fled to Kenya, East Africa, after allegedly cheating hundreds of people through a chit fund scam, Deputy Commissioner of Police (Bengaluru East), D Devaraja, said. Police have registered a complaint and launched an investigation after more than 400 complaints — mainly from Kerala – surfaced against them.
The couple, identified as Tomy and Shiny, were operating A&A Chits and Finance, which promised investors high returns. The couple had been in the business for around 25 years and lured customers with returns ranging from 15 to 20 percent. A chit fund is a rotating savings and credit scheme, where a group of people contributes a fixed sum regularly. In each cycle, one member receives the total collection, either by auction or draw.
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D Devaraja further revealed that the couple had liquidated the movable and immovable assets they owned before disappearing. “They sold their house and cars below market price to different people. Till today, the total number of complaints received is more than 400. The total amount cheated is almost ₹40 crore. Most of the complaints are from Kerala. The accused left the country for Kenya on the 3rd on a tourist visa. Now we are going through bank details and financial transactions,” he said.
A First Information Report has been registered against the duo under BNS 318, 317, the Chit Funds Act of 1982, and various sections of the BUDS Act (Banning of Unregulated Deposit Schemes Act, 2019).
‘We were cheated during RCB victory celebrations’
Devastated investors have come forward sharing how the accused family vanished without a trace during the city’s “Royal Challengers Bengaluru (RCB) victory celebrations”.
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Navina, one of the victims, told news agency ANI, “We met the Commissioner because we have been victims of fraud by an entire family. The entire family absconded during the RCB victory celebrations when the whole city was celebrating. They took advantage of that moment to run away. It’s been one month since they disappeared and we have no clue about their whereabouts. We are still searching for them.”
She also revealed that despite their efforts, the situation remains uncertain. “The bank says their house is under loan, and their properties are now being attached. What do we do now? The accused have been running this chit fund for 23 years and earned the trust of so many people. Almost 700 families invested in the name of trust. I personally invested ₹10 lakh.”
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Another investor, who claimed to have known the family for nearly 30 years told news agency: “I invested ₹30 lakh. We trusted them for decades, but the whole family cheated us. They duped around 700 people. We even met DK Shivakumar and the home minister seeking help.”
How the couple pulled off a multi-crore scam
Tomy and Shiny ran a chit fund company called A&A Chits and Finance, where they promised people high returns of 15-20% on their savings.
At first, they gained people’s trust by paying the promised returns on time. This encouraged more people to invest larger amounts, even using money saved for important things like children’s education, medical expenses, and weddings. Some people even sold their properties to invest.
But recently, the couple stopped paying returns and switched off their phones. They shut down their office and disappeared, leaving investors unable to reach them.
Police say that over 400 people have filed complaints, claiming they lost huge amounts of money An NDTV report says the company was facing a major financial crisis, which likely caused the scam to collapse.