Bengaluru Chit Fund Scam: Kerala Couple Fled With ₹40 Crore

 

Tomy and Shiny, A&A Chits & Finance

Bengaluru Chit Fund Scam: Kerala Couple Fled With ₹40 Crore

In a shocking turn of events, a couple from Kerala, who had been running a well-known chit fund in Bengaluru, vanished after allegedly duping hundreds of people. The estimated amount siphoned off? A whopping ₹40 crore.

What Exactly Happened?

This wasn’t a fly-by-night scheme. The couple had been operating for nearly two decades and had gained the trust of their investors through timely payments and smooth communication. Until one day — everything just stopped.

The Alleged Masterminds: Who Were Tomy and Shiny?

Tomy and Shiny were known faces in the community. Friendly, well-spoken, and religious, they lived a seemingly modest life while quietly running a financial web. Their company, A&A Chits & Finance, promised great returns and had an aura of credibility. Investors considered them family. That emotional connection is what made this fraud hurt even more.

How Their Business Ran Smoothly for Years

The business was classic — monthly contributions from members, auctions, and payouts. Everything worked like clockwork. People received timely returns, some even used it as their primary investment method. The couple even gave small gifts during festivals, further deepening trust.

Timeline of the Scam

The Rise: Nearly Two Decades of Trust

They had been operating smoothly for nearly 20 years. Their ability to consistently provide good returns made them popular across neighbourhoods. Many invested their life savings without a second thought.

The Fall: Sudden Halt of Payments

Sometime earlier this year, payments became irregular. Excuses followed: bank delays, temporary cash crunches, health issues. But soon, phones were unreachable, office shutters stayed down, and panic spread.

The Escape: How They Vanished Overnight

And then came the real shock. The couple had quietly sold off their assets—homes, vehicles, jewellery—and left the country. They reportedly flew to Kenya, and since then, have remained unreachable.

Investors Left in the Lurch

Number of Victims and Total Amount Lost

It’s estimated that over 400 people were duped. The total fraud amount is around ₹40 crore, though some suspect it could be even higher as many small investors may not have come forward yet.

Stories of Pain, Loss, and Betrayal

Some victims invested their retirement funds. Others had saved for their children’s education or marriages. One woman shared that she lost ₹30 lakh—money she and her husband had built over 15 years. Another elderly man said he trusted the couple so much, he didn’t even keep written proof.

How Chit Funds Actually Work

Basics of a Chit Fund Scheme

Chit funds are essentially group saving schemes. Each member contributes a fixed amount monthly. The pooled money is given to one member via auction or lucky draw. This continues until everyone gets a turn.

Why People Still Trust Them

They seem simple, community-based, and have been around for decades. For many, chit funds feel safer than stock markets or banks. There’s a human face to them — which, unfortunately, makes them vulnerable to manipulation.

Warning Signs That Were Missed

Too-Good-To-Be-True Returns

The scheme promised nearly 15–20% annual returns — way more than any bank or even mutual funds. That should’ve raised red flags.

No Formal Registration or Records

The company wasn’t properly registered. Many investors trusted word-of-mouth or verbal promises. No receipts, no legal documents — just blind faith.

What Authorities Are Doing Now

FIRs, Investigations, and Freezing Assets

Police have started investigating. FIRs have been filed under multiple financial crime laws. The couple’s local assets are being traced and frozen.

Global Hunt and Legal Procedures

Efforts are on to coordinate with international agencies to bring the couple back from Kenya. But extradition is never simple and could take months, if not years.

Lessons for Common Investors

Always Verify Before You Trust

Whether it’s a friend, a neighbour, or a relative running a financial scheme — check their registration, licence, and background. Never go only by word of mouth.

Spread Your Investments Wisely

Don’t put all your eggs in one basket. Diversify. Keep a part in bank deposits, some in mutual funds, and if at all, only a small part in such chit funds.

Know Your Legal Rights

Understand what documents you’re signing. Demand receipts. And if something feels off, report it immediately. Early reporting improves the chances of recovery.

A Look at Past Similar Scams

The Pattern of Greed and Trust Misuse

This scam isn’t the first and won’t be the last. Across India, many chit funds have used similar tactics—promise high returns, build trust, and then vanish. It’s a repeated cycle.

Conclusion: Stay Smart, Stay Safe

This case is a brutal reminder that emotional trust should never replace financial due diligence. If something sounds too good to be true, it usually is. Be cautious. Verify everything. And protect your hard-earned money like your life depends on it — because sometimes, it really does.

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FAQs

1. Are chit funds legal in India?
Yes, but only if they are registered and operate under the Chit Funds Act, 1982.

2. How can I check if a chit fund is genuine?
Ask for registration details, check with the Registrar of Chits in your state, and see if they file annual statements.

3. What should I do if I’ve already invested in a suspicious scheme?
Immediately file a complaint with your local police station and provide all proof of transactions.

4. Can the victims recover their money?
Recovery depends on the available assets and how fast the legal system acts. Some money may be recovered, but full refund is rare.

5. What are safer alternatives to chit funds?
Recurring deposits, mutual funds (via SIPs), post office savings schemes, and PPF are safer and regulated options.

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Meta Description:
Kerala couple flees Bengaluru after duping 400+ investors in ₹40 crore chit fund scam. Here’s a full timeline, investor stories, warning signs, and how to protect yourself from similar frauds.