Alappuzha, 14 September (H.S.): A Kerala representative of VPVV Techno Constructions, a company accused of orchestrating an investment fraud estimated at Rs 1,000 crore by displaying fabricated defence contracts, has been arrested by the Varkala police.

The accused, P Pradeep Kumar, a native of Parippally in Kollam district, was arrested in a case involving the alleged cheating of A M Muneer of Vadasserikonam in Varkala of Rs 70 lakh.

Pradeep was detained after Muneer spotted him at a hotel near Cherthala railway station around 4 pm on Sunday. Muneer, assisted by local residents, reportedly prevented him from leaving and alerted the police.

The Cherthala police took Pradeep into custody and handed him over to the Varkala police. His arrest was recorded following questioning.

According to Muneer's complaint, representatives of VPVV Techno Constructions claimed that the company had secured contracts for manufacturing weapons for the United States Department of Defence. Investigators suspect that forged or fictitious documents were shown to potential investors to make the claims appear credible.

The accused allegedly promised investors extraordinary returns, claiming that an investment of Rs 1 crore would enable them to obtain a subcontract worth Rs 5,000 crore. Investors were also reportedly assured a profit of 25 per cent on their contributions.

Muneer alleged that he was persuaded to invest Rs 70 lakh after being promised partnership in the proposed Rs 350-crore Shivapuri Temple construction project at Varkala. The promised partnership and returns allegedly failed to materialise.

Other accused named in the case include VPVV chairman Venkitta Venkit, G S Biju, another Kerala coordinator of the company, a person identified as Dr Saab, and Yelathi Padmaraj Gopal. Police suspect that the group attracted investors through false claims about large defence and construction contracts. Further investigation into the company's transactions and the alleged roles of those named is continuing.

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Hindusthan Samachar / Arun Lakshman