Many Tamil Nadu BJP Members Allegedly Embroiled in Rs 2,438 Crore Aarudhra Gold Scam

Many executive members and functionaries of the Bharatiya Janata Party (BJP) have been reportedly named in the Aarudhra Gold Company scam, but Tamil Nadu BJP President K Annamalai refuses to talk about the matter. 

Meanwhile, Annamalai has projected himself as the torchbearer in the fight against corruption and claimed he would expose the corruption of all the political parties that have ruled the state. However, he has been mocked for projecting the property list of Dravida Munnetra Kazhaga (DMK) ministers claiming it is a list of corruption complaints.

Aarudhra Gold Company, headquartered in Chennai, is accused of defrauding about 1.92 lakh people of funds worth Rs 2,438 crore. They purportedly attracted deposits through manipulative tactics, claiming 25-30% interest returns between 2020 and 2022. Specifically, 256 agents have been identified who allegedly procured deposits from the public, and they are under investigation.

Since June 2022, the scam allegations against the Aarudhra Gold firm came out one by one, and until March 2023, around 10,000 depositors had filed complaints of fraudulence. The Economic Offences Wing (EOW) CID of Tamil Nadu Police registered cases against 21 people and arrested 13 of them, including K Harish, BJP’s state secretary of sports and skill development cell.

The EOW has so far frozen the bank accounts worth Rs 100 crore and recovered Rs 6 crore cash and 4 kg gold jewellery. The EOW has also found 130 properties worth several crores. Asset freezes are expected at the end of the investigation.

BJP OBC WING SECY ABSCONDING

The middleman, S Russo, deposed that he gave Rs 12 crore to the actor, producer and BJP OBC unit vice president R K Suresh to settle the case through the Union government’s intervention.

The EOW sent summons to Suresh to appear in person for investigation, but he has been absconding. A lookout notice has been issued for him and three others in hiding.

Meanwhile, Suresh, through his advocate, approached the Madras High Court seeking to quash the summons issued by the EOW and claimed it was a political vendetta. On April 22, the Madras High Court refused to stay the summons stating the case cannot be taken lightly as it deals with funds of lakhs of people. 

Due to the non-appearance in person, the crime branch police froze Suresh’s bank accounts on May 4. He allegedly went abroad for medical reasons and has been unreachable for two months.

Amarprasad Reddy, the youth wing secretary of BJP Tamil Nadu, inducted Suresh into the party, and Suresh was seen as being in close proximity with BJP chief Annamalai. Questions have risen about whether Reddy and Annamalai have taken a share of the fraudulent funds.

MORE BJP INVOLVEMENT

Harish, a boxer, was appointed as the secretary of the sports and skill development cell of the state BJP in June 2022, two months after a case was registered against him. He deposed that he apparrently transferred Aarudhra deposit funds to BJP leaders and members to get the party position.

The EOW summoned two of the party’s legal wing functionaries, Alex and Ranipet district party functionary Dr Sudhakar for inquiry in connection with the case on April 12.

A day later, Tamil Nadu state secretary of BJP’s State Economic Wing, MR Krishna Prabhu, quit the party on April 13, citing the party functionaries’ alleged involvement in the multi-crore Aarudhra scam.

Those who lost money in the Aarudhra scam stormed the BJP headquarters in Chennai and staged a protest on April 13.

POLITICAL INTERVENTION BEHIND THE ROBBERY?

RBI has been reducing the interest rate on deposits made in public sector banks, and the interest rate on Provident Funds is also decreasing. For every Rs 1 lakh deposited in a savings bank account, the account holder gets Rs 330 per month, and it is Rs 460 per month for fixed deposit accounts. It is possible to get Rs 1,000 returns per month for investments in mutual funds.

Senior journalist A Ayyanathan said in an interview with IBC Tamil, “Why did the enforcement directorate, income tax or any other relevant body not question how they can give 30% interest? How did they start the firm? How did the entire robbery happen? Are they not bound by the law? How did they rob funds for so long? Why didn't the relevant authorities stop it?”

“Annamalai is saying take action against the necessary people. But, it is not easy to establish a link with those who have influenced the scam but not directly involved themselves. Without political intervention, such a fraud is impossible. The entire system was indifferent to the loot because bigger hands were at play,” he alleged.

He stated that the government has a duty and responsibility to protect the public from such fraudulent companies.

Many people’s pension funds were deposited in Aarudhra Gold. On April 23, the EOW said arrangements are being made to return the looted money to the depositors within the next six months.