The Kanniyakumari District Crime Branch (DCB) has arrested Paulraj, owner of Divine Chit Funds, for a massive ₹9-crore fraud involving over 90 victims. The accused was apprehended in Chennai following a prolonged investigation.

Key Takeaways

  • Total fraud estimated at ₹9 crore.
  • Over 90 individuals cheated by the accused.
  • Main suspect, Paulraj, arrested in Chennai and remanded to judicial custody.

In a significant crackdown on financial crimes, the Kanniyakumari District Crime Branch (DCB) police have arrested 57-year-old Paulraj. Paulraj, the proprietor of 'Divine Chit Funds' in Kadayalumoodu, is alleged to have orchestrated a sophisticated scam that drained nearly ₹9 crore from local investors.

The investigation was triggered by a complaint from Satheesh Kumar, 47, of Thirparappu. According to the records, Satheesh had joined a ₹10-lakh auction chit in April 2022 and paid ₹8.83 lakh in installments. However, upon the maturity of the chit, Paulraj allegedly evaded payment and absconded with his family, leaving investors stranded.

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Why This Matters

BozokMedia analysis shows that the persistence of unregistered chit funds in semi-urban pockets highlights a critical gap in financial literacy and regulatory enforcement. Such scams often target the middle and lower-middle class, who seek safer alternatives to traditional banking but fall prey to high-return promises.

The lack of transparency in private chit funds makes them breeding grounds for financial fraud and embezzlement.

Following the registration of the case on December 10, 2025, police discovered that Paulraj had repeated this pattern across multiple schemes, cheating over 90 people. After a manhunt, he was traced and arrested in Chennai on Sunday. The court has since remanded him to judicial custody.

Did You Know?: Chit funds are regulated by the Chit Funds Act, 1982; operating such schemes without proper registration is a serious criminal offense in India.

Frequently Asked Questions

Q1: How many people were affected by the Divine Chit Funds scam?
A: Police investigations reveal that more than 90 people have been cheated in this particular scam.

Q2: Can other victims still report their losses?
A: Yes, the DCB police have issued a public notice stating that anyone who lost money in this scam should lodge a formal complaint.