Who Is the Mastermind Behind the Chit Fund Scam Arrested in Tamil Nadu?
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Synopsis
A major arrest has been made in a high-profile chit fund scam that has shaken the regions of Odisha and Tamil Nadu. The mastermind behind the fraud, who has been on the run since 2019, was finally apprehended by the CBI. This arrest sheds light on the dark world of Ponzi schemes and the ongoing efforts to bring justice to the victims.
Key Takeaways
- Sivakumar Gangadharan arrested after evading law enforcement since 2019.
- The chit fund scheme involved fraudulent collection of funds from unsuspecting investors.
- Rightmax Technotrade International Ltd was banned by SEBI in 2015 from raising public funds.
- The case highlights the ongoing issue of Ponzi schemes in India.
- Several arrests have been made over the years in connection with the scam.
Bhubaneswar, Aug 4 (NationPress) - The Central Bureau of Investigation (CBI) has apprehended a director from Tamil Nadu linked to a widespread chit fund fraud, evading law enforcement since 2019, an official disclosed on Monday.
Sivakumar Gangadharan, also known as G. Sivakumar, a director of Rightmax Technotrade International Ltd, was arrested on Sunday in Karur, Tamil Nadu, by a CBI team from Bhubaneswar.
Declared a proclaimed offender in the chit fund scam case, Sivakumar had avoided capture since 2019 by frequently altering his location, according to the CBI.
Initially registered in 2014, the case involves serious allegations of fraud, criminal conspiracy, and breaches of the Prize Chits and Money Circulation Schemes (Banning) Act, 1978.
The CBI leveraged advanced technical tools and intelligence sources to locate Sivakumar, as stated by an official.
On Sunday, a CBI team from Bhubaneswar captured him and presented him before the Special CJM Court, which subsequently placed him in judicial custody until August 18.
Founded on April 1, 2010, in Bangalore, Rightmax Technotrade International is implicated in a multi-crore rupee chit fund scam, allegedly gathering funds from investors under the guise of offering extraordinary returns.
According to the CBI, this company is among 44 Ponzi schemes entangled in the multi-crore chit fund scandal, enticing investors with promises of a monthly interest rate of 10 percent on deposits.
In February 2015, the Securities and Exchange Board of India (SEBI) prohibited the company from soliciting public funds.
The CBI initiated the case in 2014, focusing on allegations of fraud, conspiracy, and violations of the Prize Chits and Money Circulation Schemes (Banning) Act. The investigation has, over the years, targeted significant individuals associated with RTIL.
In Odisha, the company reportedly defrauded investors of around Rs 17 crore, leading to several officials being arrested in relation to the scam.
In 2017, an Odisha court sentenced two employees of the chit fund company to a three-year prison term.
Point of View
I recognize the importance of reporting on financial scams with integrity and accuracy. The arrest of Sivakumar Gangadharan marks a pivotal moment in the fight against financial fraud, reaffirming our commitment to uncovering the truth and advocating for the victims. Our national approach ensures that we remain vigilant in addressing such issues that affect the public's trust in financial systems.
NationPress
19/08/2025
Frequently Asked Questions
What was the role of Sivakumar Gangadharan in the chit fund scam?
Sivakumar Gangadharan, as a director of Rightmax Technotrade International Ltd, was involved in orchestrating a multi-city chit fund scam, collecting funds from investors under false pretenses.
When was the chit fund scam case registered?
The case was initially registered in 2014 and has involved extensive investigations and multiple arrests.
What are the legal implications for Rightmax Technotrade International Ltd?
The company faces serious allegations including fraud and criminal conspiracy, with regulatory bodies like SEBI having previously barred it from raising public funds.
How much money did the company reportedly defraud investors in Odisha?
Rightmax Technotrade International Ltd allegedly duped investors in Odisha of approximately Rs 17 crore.
What measures have been taken against the individuals involved in this scam?
Several officials linked to the scam have been arrested, and in 2017, an Odisha court sentenced two employees of the chit fund firm to three years in prison.
