VPVV Investment Scam: Kerala Coordinator Arrested in Rs 700-Crore Fraud Case

Police have arrested P Pradeep Kumar, the Kerala coordinator of VPVV Techno Construction, in connection with an alleged Rs 700-crore investment fraud, as investigators probe a network accused of luring investors with claims of lucrative projects linked to the US Department of Defence.

Kumar, a resident of Paripally in Kollam district, was arrested after A M Muneer, who allegedly lost Rs 70 lakh, spotted him at a hotel in Cherthala on Sunday and alerted police. Cherthala police took Kumar into custody and later handed him over to the Varkala police team. He was produced before a court on Monday and remanded in judicial custody. Police are expected to seek his custody for further questioning.

According to investigators, VPVV allegedly built investor confidence by showing fake documents purportedly relating to US Defence Department contracts. The company allegedly claimed it had secured major contracts and would undertake projects across India. Investors were reportedly attracted by the promise of substantial returns and the credibility created around the supposed defence-related projects.

Police have alleged that the group used an elaborate network of senior office-bearers and coordinators to promote the scheme and attract investors. The investigation is also examining the flow of funds, the preparation of the alleged fake documents and the network through which investments were collected.

The accused include VPVV chairman Venkitta Venkit, directors and coordinators Dr Saab, Yelathi Padmaraja Gopal and G S Biju, besides Kumar. Delhi Police recently arrested Venkit and two others in connection with a similar case.

Investigators have alleged that although the group purchased land in several states, the promised projects were never implemented. Several other complaints have also been registered against VPVV in Kerala, with some accused having secured bail in earlier cases.

Police are now seeking to establish the precise roles played by the company's senior leadership and regional coordinators and trace the money allegedly collected from investors. The allegations remain under investigation.