The Economic Offences Wing–Crime Investigation Department (EOW-CID) has arrested a suspended Chennai City Police Inspector along with two other accused in connection with an alleged gold coin investment fraud that investigators say attracted crores of rupees from investors through promises of discounted gold and assured monthly returns.
According to investigators, the scheme, which allegedly mobilised more than ₹20 crore, was promoted through WhatsApp groups and relied heavily on trust, personal networks and early payouts to attract new investors before allegedly collapsing.
Gold Coin Scheme Promised High Returns
According to the investigation, the investment scheme was launched in 2023 by Prabhumani, a relative of suspended Inspector Sheela Mary, who had already been arrested earlier in the case.
The scheme allegedly operated through Vinayaga Enterprises, offering investors:
- Gold coins below prevailing market prices
- Assured monthly returns
- Attractive investment packages
- Exclusive offers promoted through WhatsApp groups
Investigators allege that these promises convinced numerous individuals to invest substantial sums.
Police Personnel Among Alleged Victims
The EOW alleges that Sheela Mary, who was serving as Inspector at the Royapuram All Women Police Station at the time, actively promoted the investment scheme among Chennai City Police personnel.
According to investigators, she encouraged:
- Police officers
- Police families
- Residents of police quarters across North Chennai
to invest in the scheme.
The investigation further claims that during the initial phase, Prabhumani and Sheela Mary distributed gold coins to some investors using an official government vehicle, creating confidence that the investment model was genuine.
Authorities believe these early deliveries encouraged additional investments from new participants.
Complaint Triggered Criminal Investigation
The case came to light after a bank employee filed a complaint alleging that he had been cheated through the investment scheme.
Based on the complaint, police registered an FIR against Sheela Mary and other accused.
The principal accused, Prabhumani, was arrested on June 9, while the remaining absconding accused—Sheela Mary, Senthilkumar alias Senthil and Kalpana—were later arrested by the EOW-CID.
The case has been registered under relevant provisions of the Bharatiya Nyaya Sanhita (BNS) and the Tamil Nadu Protection of Interests of Depositors (TNPID) Act.
Investigation Continues as More Victims Emerge
Investigators have so far identified:
- 56 depositors
- Total verified investment of approximately ₹8.17 crore
However, the complainant has alleged that the overall amount mobilised through the scheme exceeded ₹20 crore.
The EOW is continuing efforts to identify additional investors, examine financial records and trace the movement of funds.
Authorities have indicated that further arrests and legal action may follow depending on the evidence collected during the ongoing investigation.
Warning for Investors
The Economic Offences Wing has advised the public to remain cautious of investment schemes promising:
- Guaranteed monthly returns
- Gold or commodities below market prices
- Quick wealth creation
- Exclusive investment opportunities circulated through messaging platforms
Officials have urged investors to verify a company's registration, regulatory approvals and business model before investing any money.
Business and Compliance Perspective
Investment frauds involving commodities such as gold often exploit public trust by combining attractive pricing with unrealistic guaranteed returns. Businesses and investors should ensure proper due diligence, verify regulatory registrations and maintain transparent documentation before participating in collective investment opportunities.
For businesses planning international expansion or business setup in dubai, strong compliance systems, audited financial reporting and regulatory oversight remain essential to maintaining investor confidence and preventing financial misconduct.
Conclusion
The alleged ₹20 crore gold coin investment fraud highlights how trust-based promotional networks can be used to attract investors through promises of discounted assets and fixed returns.
As investigators continue tracing funds and identifying additional victims, the case serves as a reminder that investors should carefully verify every investment opportunity before committing their savings.
Shunyatax Global Insight
Shunyatax Global says that fraudulent investment schemes often follow a common pattern—early payouts build credibility, personal references expand the investor base, and unrealistic guaranteed returns attract larger investments. Whether investing in gold, real estate, startups or overseas ventures, investors should always verify legal registrations, regulatory compliance, audited financial statements and the sustainability of the underlying business model before investing.