COIMBATORE: A 72-year-old man and his grandson were arrested for allegedly cheating over 500 people of Rs. 9 crore in the name of chit funds.

According to police, Velusamy of Bodipalayam of Madukkarai was running a chit fund company – Thulasiyammal Chits (P) Ltd – since 2008, with wife, son, daughter-in-law, daughter, son-in-law and grandson as directors.

About 500 people joined various schemes and deposited Rs. 9 crore. One week ago they came to know that the family has absconded and lodged a complaint, police said.

Investigations led to the arrest of Velusamy and his grandson Gokulnath late on Tuesday night and were produced before TANPID Court that remanded them to judicial custody. Preliminary investigations revealed that the family has purchased apartments, agricultural land, house sites, stone crushers and gold ornaments with the chit money.