Chit fund owner held in ₹9-cr. fraud case
Police have arrested Paulraj, the owner of Divine Chit Funds, for allegedly defrauding over 90 people of approximately ₹9 crore. The suspect had been absconding after failing to return funds to investors in a chit scheme.
Why it matters
Financial fraud cases involving unregulated or informal investment schemes underscore the risks to retail investors and the importance of financial oversight.
Kanniyakumari District Crime Branch (DCB) police arrested a 57-year old man, Paulraj, in connection with a ₹9-crore chit fund scam involving more than 90 people.
According to the police, the complainant, Satheesh Kumar, 47, of Thirparappu had joined a ₹10-lakh auction chit run by Paulraj, owner of Divine Chit Funds in Kadayalumoodu on April 11, 2022, and subsequently paid a total of ₹8.83 lakh in several instalments. After the chit period ended, he sought the return of the amount he paid. However, Paulraj allegedly delayed the payment and later absconded with his family, the complaint stated.
The complaint was registered by the DCB police on December 10, 2025.
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