CHENNAI: A director of LNS International Financial Services, which is under probe for a massive Rs 850-crore investment fraud, was arrested at Chennai airport after immigration authorities flagged him using a Look Out Circular (LOC) and a Red Corner Notice (RCN).
Officials said Vedhanarayanan, one of the firm's directors, had arrived from the UK and was immediately detained and handed over to the Economic Offences Wing (EOW). He was presented before a magistrate, placed in two-day police custody, and later lodged in Puzhal Central Prison.
It may be noted that the EOW registered a case in 2023 against the company, its directors -- brothers Lakshminarayanan, Mohanbabu, Vedhanarayanan and Janardhanan -- and several associates after a flood of complaints alleged that the firm ran fraudulent investment schemes. The company had promised unusually high monthly returns of 6%-10% on market-linked investments to attract depositors before defaulting on payouts. So far, 5,322 complaints have been filed.
Several investors told police that they had lost even their principal amounts. Following the registration of the case, all four directors fled the country, forcing investigators to issue LOCs and RCNs to track them.
Searches were carried out at 21 premises across Chennai, Tiruvallur and Kancheepuram in August 2023. Initial assessments suggested that the scale of the fraud may be far larger, with more than one lakh investors believed to have deposited funds, and losses stretching into several thousand crores.
The EOW is continuing its efforts to trace the remaining accused and map the full financial trail, sources said.