Summary of this article
Nearly 34,000 complaints have been filed over alleged FQL investment losses in Tamil Nadu.
Police suspect investors were shifted from FQL to VG Investment before funds disappeared.
Authorities are investigating the network, fund flows and claimed Rs 150 crore exposure.
The promise of quick and high returns can make investment schemes tempting, but it can also be a warning sign of a potential scam. The investment scam linked to the FQL app in Tamil Nadu has now drawn thousands of complaints, with investors claiming significant financial losses.
Police have received nearly 34,000 complaints from investors who allegedly lost money through the FQL platform, with around 7,000 complaints submitted on Sunday alone, according to The New Indian Express.
The alleged scam has been reported in Melur and the surrounding areas of Madurai district, as well as Natham and neighbouring areas of Dindigul district. According to police, the FQL app had been operational for around one and a half years before becoming inaccessible about three months ago. Following this, investors began approaching the police, prompting the District Crime Branch (DCB) to launch an investigation.
How Did The FQL Investment Scam Work
The scam alleged scheme operated in a manner similar to multi-level marketing, with agents encouraging people to invest money and promising attractive returns. According to the report, one investor from Melur, R Sakthivel, initially invested Rs 50,000 and received returns. He later invested around Rs 1 lakh after agents allegedly told him that investing in VG Investment would generate higher profits.
Police have said that people who invested through FQL received their money back for a certain period. Investigators suspect that VG Investment was subsequently introduced and that money was siphoned off after investors were encouraged to move to the new investment.
Police believe VG Investments may have been launched after those behind the operation sensed that the FQL scheme could be exposed.
Investors Claim Rs 150 Crore Invested
The alleged financial exposure may be significantly higher than what has been established so far. Residents in Natham and surrounding areas claimed that around 8,000 people had invested nearly Rs 150 crore in the scheme, according to The New Indian Express.
However, Rs 150 crore should not be treated as the confirmed amount lost in the alleged scam. The figure is based on claims by residents and investors, while authorities are still investigating the total amount collected and the number of people affected.
The District Crime Branch has arrested several people in connection with the case and is investigating the wider network and the flow of funds.
This case shows why investors should be cautious of schemes that promise quick and high returns. Before investing, check the platform and intermediary from official sources and avoid investing based only on advice from social media groups.
