Chennai Businessman Muhammad Sharshad Arrested for Allegedly Cheating Two Individuals of Rs 40 Lakh

A businessman from Chennai, previously known for accusing CPIM leaders, was detained on Friday for allegedly defrauding two individuals of Rs 40 lakh, according to police reports. The accused, Muhammad Sharshad, aged 48, resides in Nungambakkam, Chennai. He faces charges in two cases filed at Ernakulam South Police Station on September 16.

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Sharshad reportedly collected Rs 30 lakh from a resident of Kadavanthra and Rs 10 lakh from someone in Elamkulam during 2023. He promised them a 24 per cent annual return through investments in Penda Private Limited. "Sharshad had claimed to be the company’s director, while one Saravan, a Tamil Nadu native, was introduced as the CEO. He also promised the complainants a 5 per cent stake in the firm," a police officer said.

Allegations and Arrest

The businessman had earlier accused a UK-based entrepreneur of being a benami for CPIM leaders in Kerala. He also alleged that M V Govindan’s son leaked his complaint. Sharshad was apprehended in Chennai and is being transported to Kochi for further proceedings.

The police stated that Sharshad failed to return the invested money or fulfill his promises. Following a court order, the police registered a case after the victims sought an investigation through legal channels.

Legal Proceedings

Authorities confirmed that Sharshad will be presented before the court on Saturday. The case highlights ongoing issues related to investment fraud and the importance of thorough investigations.

With inputs from PTI