Hundreds protest in Dindigul, Madurai over mobile app investment scam
Hundreds of investors in Tamil Nadu's Dindigul and Madurai districts staged protests on Friday, alleging they were cheated of their savings through a mobile application-based investment scheme. The protesters demanded action against those responsible for the multi-crore fraud.
The demonstrations were held in Natham and neighbouring areas in Dindigul district, as well as in Alanganallur and Melur in Madurai district. According to preliminary information, the mobile application was allegedly operated by Ranjith of Melur, who is yet to be apprehended.
In Natham, protesters gathered outside the residences of Ramesh and Vijay, who purportedly acted as agents collecting investments from the public. The agents had promised unusually high returns, luring thousands of people to invest their money.
The scheme promised that an investment of ₹54,000 through the app would double in 45 days, with returns continuing thereafter. Trusting these assurances, thousands of residents from Natham and nearby areas, as well as Alanganallur and Melur, reportedly invested sums totalling more than ₹10 crore.
For the past few months, investors said they had been receiving returns in US dollars and were able to withdraw the amounts. This success encouraged more people to join the scheme and invest through the app.
However, for the last two days, investors found it impossible to withdraw money from the application. News of the withdrawal failure spread rapidly on social media, causing panic and shock among the investors.
In response, the investors gathered outside the residences of the alleged agents. In Natham, the protest turned violent, with demonstrators damaging the house of Ramesh and pelting stones at a police vehicle when he was being taken for questioning. Similar protests took place peacefully in Alanganallur and Melur, where police met the demonstrators and assured them that appropriate legal action would be taken.
Police are currently questioning Ramesh in connection with the case. The protesters dispersed only after receiving assurances from authorities. Investigations are ongoing to trace Ranjith and other individuals involved in the alleged scam.
This incident highlights the risks associated with unregulated investment apps that promise unrealistic returns. Authorities have repeatedly cautioned the public against such schemes, which often operate like Ponzi programmes, paying early investors with money collected from new ones. Investors are advised to verify the credentials of any investment platform and consult financial experts before committing funds.
