KOCHI: The Kochi city police have busted a money chain racket in the city and arrested three persons. The racket was being operated in the name of Isha Alappatt and had two offices in Kochi--one at a shopping mall near Vyttila and another on Beeran Kunju Road.
Acting on a tip-off, a police team raided the racket’s offices here and arrested three persons identified as Noushad, Tony and Moosa. The police are on the lookout for two more persons, identified as Babu Alappatt and Sajeevan Mundakkal, in connection with the case.
During the raid, the police seized several documents pertaining to money chain schemes run by the racket. Preliminary investigations revealed that the firm had collected several lakhs of rupees from people including those from outside Kerala.
Officials said the firm ran different types of money chain schemes ranging from Rs 5,000 to Rs 1 lakh and lured people by promising valuable prizes and high rates of commission for getting more members into the company.
“The accused had been enrolling gullible people as agents by collecting deposits and each of these persons would require to attract a group and make them join the schemes for the stipulated fee, for which the promoter would be assured commission,” the officials said. The accused were produced in a local court and remanded in custody.