The Hindu Business Line : Software company promoters held for duping depositors in Vizag

A SOFTWARE firm here, Log Sanchar, is accused of collecting deposits of Rs 3.5 crore from depositors/data entry operators in different districts claiming that it had secured a library automation contract from a UK-based firm.

The irate depositors/data entry operators stormed the office of the firm here in the MVP Colony on Tuesday evening and the police have registered a case.

Mr R. Arun Kumar, Managing Director, and four of his associates were arrested under Sections 120 and 420. The firm published advertisements in the local dailies calling for deposits, promising them a monthly income up to Rs 10,000. The jobless youth, housewives and others could undertake data entry jobs and earn the money. The firm claimed that it had obtained a library automation project from a British firm.

It had opened branches at MVP Colony, Gajuwaka, Vizianagaram and Kakinada. "Due to delay in payment of remuneration to some of the data entry operators, some grew suspicious and spread rumours that the firm was on the verge of closure," the CI of Police, Mr K. Mahendra Patrudu, said on Wednesday.

An interesting fact is that quite a few policemen and journalists were among the victims who had paid security deposits to undertake job works sitting at home on behalf of Log Sanchar Software Solutions. The depositors also included a retired judge and a few advocates.

Meanwhile, the police recovered Rs 6 lakh from the promoters and employees of the firm and asked the ICICI Bank to freeze the account of the company. The firm has a balance of Rs 1.15 lakh in its ICICI Bank account.

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