CHENNAI: Honorary secretary-general of the Indo-Russian Chamber of Commerce and Industries (IRCCI) P Thangappan, 68, has been arrested on charges of abusing his position and aiding fraudsters who cheated a city businessman of Rs 7.3 crore, promising him a Rs 2,000crore Russian govt contracts.
The main accused, C Arunraj, 38, floated a company, Indo-Russian Business Associates (IRBA), lived in a beach house on the ECR, hired armed security guards, and roamed around in a luxury car with the Russian flag to convince potential investors, said a police officer. Police recovered 476 sovereigns of gold jewellery, 400 kg of silver, Rs 14.5 lakh cash, and 11 luxury cars, including BMW, Audi, and Mercedes, among others, from the accused.
A nine-member gang has arrested been by the Central Crime Branch of the city police in Nov 2024 in connection with the scam.
Arunraj sent the retired VAO, Dharman, and a tahsildar, Viswanathan, deputed to TASMAC, to lure a city-based businessman with interests in solar energy and jewellery certification projects. They held meetings at a star hotel in R A Puram to convince him, police said.
Inquiries revealed that Thangappan fraudulently gave the post of deputy honorary secretary-general to Arunraj and allowed him to run his office from the Russian Cultural Centre, Chennai, for a monthly rent of Rs 1.58 lakh since 2021, without the knowledge of the Russian Cultural Centre authorities. He had also taken a lump sum of Rs 4 crore from the main accused.
Thangappan was produced before a magistrate and remanded in judicial custody.
Meanwhile, city police received another complaint from a businessman in Tirupur, who alleged that Arunraj and his accomplices cheated him of Rs 4.4 crore.