Fresh fraud complaints pour in after Kanniyakumari chit-fund operator's arrest
Kanniyakumari District Crime Branch (DCB) police have arrested N. Paulraj, 57, of Kadayal, in connection with the alleged defrauding of over 90 people of around ₹9 crore through a chit-fund business. Following his arrest, several more affected persons have come forward to lodge complaints, raising the total amount involved in the case.
Paulraj is said to have started Divine Chit Funds at Kadayalumoodu in 2007 and registered the firm in the same year. Hundreds of people reportedly joined the chit funds and deposited money with him. While he initially returned the amounts to subscribers, he allegedly began delaying payments in recent years and eventually absconded with his family.
The first complaint in the case was filed by Satheesh Kumar, 47, of Thirparappu, who had paid a total of ₹8.83 lakh in multiple instalments after joining a chit in April 2022. Based on his complaint, a case was registered on December 10, 2025. Subsequently, other affected persons lodged complaints, bringing the total amount involved in the complaints to ₹5.21 crore by the time of Paulraj's arrest.
Following continuous directives from Kanniyakumari District Superintendent of Police R. Stalin, DCB police tracked Paulraj to a location in Chennai. He was arrested on Saturday (August 8) and remanded in judicial custody at the Kanniyakumari district jail in Nagercoil. During the preliminary inquiry, Paulraj allegedly told police that the total amount involved in the chit-fund business could be close to ₹9 crore and that he would settle the dues with affected subscribers.
However, after the news of his arrest spread, many more people have come forward to lodge complaints in the past few days. Police expect the total amount involved to be considerably higher than ₹9 crore. According to the complaints received so far, apart from several chits between ₹1 lakh and ₹10 lakh, about four people had joined a ₹25-lakh chit, one person had joined a ₹30-lakh chit, and around 15 members had joined chits involving more than ₹10 lakh.
The police have appealed to members of the public affected by the alleged chit-fund scam to come forward and lodge their complaints. Investigations are ongoing, and further details are expected as more victims file reports.
