Chennai Police Crack Down on Multi-Crore Entertainment Hub Fraud
The Central Crime Branch (CCB) of the Tambaram City Police has made a significant breakthrough in a high-profile financial fraud case, arresting a prominent businessman and his associate on Sunday. The arrests are linked to an alleged fraud amounting to a staggering Rs 21.75 crore, which has sent shockwaves through the local business community.
Details of the Arrest and Suspects
Law enforcement officials identified the primary accused as E V P Santhosa Reddy, a 45-year-old businessman, and his associate, V Vinod, aged 52. The arrests were executed following a detailed investigation initiated after a formal complaint was lodged by B Gunasekar, the manager of Vels Film International Ltd. The swift action by the police underscores their commitment to tackling white-collar crime in the region.
The Alleged Fraud Scheme
According to the police report, the fraudulent activities began when Santhosa Reddy and his associates approached Vels Film International Ltd with a proposal to develop a joint entertainment hub. On June 25, the parties entered into a Memorandum of Understanding (MoU) to collaborate on this ambitious project. The plan involved constructing an amusement park and multiple cinema halls on a 34-acre plot of land in Chembarambakkam, which reportedly belongs to Santhosa Reddy's family.
As part of the agreement, Santhosa Reddy allegedly received a sum of Rs 21.75 crore from the Vels Group to fund the development. However, investigators claim that after collecting the substantial payment, Santhosa Reddy failed to fulfill his contractual obligations. Instead of proceeding with the project, he is accused of illegally canceling the business contract and subsequently threatening Vels Group executives to vacate the premises.
Police Investigation and Legal Proceedings
The case gained momentum under the directives of Tambaram City Police Commissioner A Amalraj, who ordered the CCB to register a formal case and conduct a thorough investigation. After gathering sufficient evidence, the police moved to arrest Santhosa Reddy and Vinod. Both individuals have been remanded to judicial custody, and authorities are actively searching for another associate named Kiranraj, who is believed to be involved in the scheme.
This incident highlights the growing concerns over financial fraud in business dealings, particularly in large-scale real estate and entertainment projects. The Tambaram City Police have assured the public that they will continue to pursue all leads to ensure justice is served and to prevent similar fraudulent activities in the future.
