The Economic Offences Wing (EOW) of the Coimbatore Police has registered a criminal case against a Kerala-based couple who operated a private textile company, following allegations of a high-return investment scheme that allegedly defrauded numerous investors.
According to investigators, the accused allegedly collected substantial investments by promising unusually high monthly returns before shutting down their business premises and becoming untraceable. Authorities have initiated financial investigations and imposed restrictions on the suspects' banking activities while efforts continue to locate them.
Alleged Promise of 18% Monthly Returns
The case centres on RV Fabtex Private Limited, an unlisted textile company that operated from Bharathiyar Road in Pappanaickenpalayam, Coimbatore.
Investigators identified the company's directors as P. Vinu Valsan and his wife Rithu Valsan, residents of Kerala's Thrissur district.
According to the complaint, the company allegedly persuaded members of the public to invest in textile-linked business opportunities by promising 18% monthly returns.
Complainant K. Parthiban, a 61-year-old retired government employee from Vellalur, alleged that the company assured investors that an investment of ₹1 lakh would generate ₹18,000 per month, paid through weekly transfers of ₹4,500. Investors were also allegedly promised repayment of their principal amount after six months through written agreements.
Investigators said the company initially made regular payments, which strengthened investor confidence.
According to the complaint, Parthiban received approximately ₹97,910 before investing an additional ₹2 lakh in October 2023.
Company Office Found Locked
Police said the alleged scheme began to unravel in December 2023, when the weekly payments abruptly stopped.
Despite repeated attempts to contact company representatives, investors allegedly received no response.
When investors later visited the company's office seeking repayment, they reportedly found the premises locked. Several other investors had also gathered outside the office after discovering that business operations had ceased.
Authorities believe the case may involve multiple investors who allegedly suffered financial losses under similar circumstances.
EOW Launches Financial Investigation
The Economic Offences Wing has initiated a comprehensive investigation into the financial activities of RV Fabtex.
Investigators are examining:
- Bank transaction records
- Investment agreements
- Company registration documents
- Financial statements
- Electronic fund transfers
- Corporate records
Authorities are working to trace the movement of investors' funds and determine the total extent of the alleged fraud.
Public Advisory
The EOW has appealed to other investors who may have invested with RV Fabtex to approach the Economic Offences Wing with supporting documents, including payment receipts, bank statements and investment agreements.
Financial crime experts have also advised investors to exercise caution when approached with investment schemes promising unusually high or guaranteed returns that significantly exceed prevailing market rates.
Before investing, citizens should verify:
- Company registration details
- Regulatory approvals
- Business operations
- Financial credentials
- Investment risks
Shunyatax Global Insight
High-return investment scams often rely on making initial payouts to build investor confidence before collecting larger deposits from victims. Financial investigators increasingly depend on forensic accounting, banking analysis and digital transaction records to trace diverted funds and identify the full network behind organised investment fraud.
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