Key accused detained under Goondas Act in alleged Rs 100 cr scam in TN private schools

Chennai, July 15 (IANS) In a significant escalation of the investigation into the alleged Rs 100-crore fraud targeting private school managements across Tamil Nadu, the Chennai City Police have invoked the Goondas Act against the prime accused, B.T. Arasakumar, days after his arrest by the Central Crime Branch (CCB).

Arasakumar, 59, is accused of orchestrating a large-scale cheating racket by allegedly promising school managements that he could secure a range of statutory approvals and regulatory clearances through his claimed political influence and contacts within government departments.

Police said on Tuesday that the preventive detention was ordered to prevent him from continuing similar fraudulent activities and to safeguard public interest while the investigation progresses.

The case was registered following a complaint lodged by D.C. Elangovan, Secretary of the Federation of Associations of Private Schools in Tamil Nadu.

According to the complaint, Arasakumar approached the managements of several private schools claiming he could facilitate permanent recognition, school grade upgradation, DTCP and CMDA approvals, no-objection certificates, and other mandatory government clearances.

Investigators alleged that he convinced school administrators to part with substantial sums of money by projecting himself as a person with extensive political and bureaucratic connections capable of expediting official procedures.

However, despite collecting the funds, he allegedly failed to secure any of the promised approvals or refund the money to the institutions.

Police estimate that Arasakumar collected more than Rs 100 crore from private school managements across the state through the alleged scheme.

Following his arrest, the Central Crime Branch said it witnessed a surge in complaints from other affected institutions, indicating that the scale of the fraud may be much larger than initially believed.

So far, complaints have been received from representatives of 47 private schools, with the reported financial loss in these cases alone exceeding Rs 7 crore.

Investigators expect more victims to come forward as the probe continues.

As part of the investigation, officials have examined digital financial transactions linked to the complaints and frozen Arasakumar’s bank accounts to prevent any further movement of suspected proceeds of crime.

Police are also tracing the money trail to identify additional beneficiaries and possible accomplices.

Meanwhile, efforts are underway to apprehend another key suspect, Muthukumar, who is believed to have played an important role in the alleged fraud.

Police said multiple teams are searching for him, while the investigation continues to uncover the full extent of the network and the total amount involved in the alleged scam.

–IANS

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