KSFE chit fraud case: Youth Congress leader in Kerala remanded in judicial custody

Kasaragod district general secretary of Youth Congress, Ismail Chithari, was recently remanded in judicial custody in connection with a case with his alleged involvement in a chit fund fraud amounting to ₹70 lakh using fake documents.

Mr. Chithari was earlier arrested by the Rajapuram police in 2019 following a complaint filed by K. Divya, manager of Kerala State Financial Enterprises (KSFE) Malakal branch in Kasaragod. The complaint details a rather elaborate scheme orchestrated by Mr. Chithari and an eight-member group, including women.

On October 30, 2019, Mr. Chithari and his accomplices purportedly submitted documents at the Malakal branch of KSFE, managing to withdraw ₹70 lakh from various chit schemes. However, suspicions were raised when repayments on these chits were halted, prompting an investigation. The probe unearthed a web of deceit, with the documents used for the transactions turning out to be fake.

In a bid to evade arrest, Mr. Chithari had initially sought anticipatory bail from the Kerala High Court. However, the court deemed it necessary for him to cooperate with the investigating authorities. Consequently, the Rajapuram police apprehended him recently.

Subsequently, he was presented before the Judicial First Class Magistrate Court at Hosdurg where he was remanded in judicial custody recently.