It is like a song playing on loop. Taken by the promise of higher returns, gullible, maybe even greedy, investors handover their hard-earned money to a finance company, only to find their money gone. It has been happening with alarming regularity but that doesn’t seem to deter people.
The tale of Kerala’s Popular Finance, a finance company in the news for an alleged Rs 2000-crore fraud, is yet another rude awakening for such investors. As investigations progress, shocking details are emerging about the extent of the fraud orchestrated by the promoters, basically, one family that ran the company.
Consider this: the promoters operated 1,760 accounts across different banks, had investments in several countries to which the money raised from local investors was routed and illegally ran many subsidiaries.
And, none of this happened overnight.
The fraud was