UPDATE

Kerala couple behind Rs100 crore Bengaluru chit fund scam disappears after duping hundreds

Tomy and Shini vanish after defrauding investors with sky-high returns

Last updated: July 09, 2025 | 04:41

Stephen N R, Senior Associate Editor

3 MIN READ

Identified as Tomy A Varghese and Shini Tomy, the duo operated A&A Chits and Finance, based in Ramamurthy Nagar, promising unusually high returns of 15–20 per cent — luring trusting families and retirees with claims of secure, RBI-backed schemes.

Source:NDTV

Dubai: In a real-life con caper straight out of Phir Hera Pheri — with shades of Bunty Aur Babli — a Kerala-origin couple has allegedly duped hundreds in Bengaluru, vanishing after running a ₹100-crore ($12 million) chit fund scam that promised sky-high returns and delivered heartbreak.

Their story eerily echoes the Bollywood classic Phir Hera Pheri, where characters fall prey to a scam promising to double money in 21 days — only to lose everything, an NDTV report said. For many Bengaluru investors, fiction has become reality.

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Much like the iconic Phir Hera Pheri plot where Raju, Shyam, and Baburao fall for a too-good-to-be-true chit fund scam — promising to double their money in 21 days — hundreds of investors in Bengaluru now find themselves similarly duped. But unlike the film, there’s no comic relief here. Only shattered trust, vanished money, and a missing couple at the center of a ₹100-crore ($12 million) scam.
According to police, over 350 investors have come forward. The couple allegedly vanished last week, shutting down their office and switching off their phones. Victims say initial consistent payouts built trust, but payments stopped recently, raising suspicion.

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Speaking to Onmanorama, investors revealed they were often introduced to the scheme by friends or family. “They promised 12–13% returns and always paid on time. I even asked my daughter and son to invest,” one complainant said. Another added, “Tomy promised to release funds for a personal emergency in July. I sent payment proof on June 30 — the message hasn’t been seen since.”

An FIR has been registered at Ramamurthy Nagar Police Station, and a manhunt is underway. Authorities suspect the couple liquidated assets before fleeing and are reviewing financial records for irregularities.

The other side of Tomy and Shini
Tomy A Varghese and Shini Tomy relied heavily on goodwill and word-of-mouth to build their business. Representatives from Malayali associations and forums recalled how the couple actively participated in religious gatherings and festivals, often sponsoring these events through their company, A&A Chits and Finance, according to OnManorama.
In January 2025, they sponsored a religious festival event, further embedding themselves into the community. This longstanding involvement helped them build trust among investors, many of whom came via personal recommendations. With records showing around 1,300 clients, the extent of the fraud is expected to rise further.

The scam started small nearly 25 years ago, with door-to-door chit fund plans. As business grew, they opened a second office in Mangaluru and launched a website. They expanded through local Malayali associations and religious festivals they sponsored.

A&A Chits offered monthly subscriptions from ₹5,000 to ₹20,000, claiming adherence to Registrar of Chits and RBI guidelines. Many reinvested matured returns, believing the scheme was safe and regulated. The maximum auction bid was capped at a 30 per cent dividend for all subscribers.

The scam surfaced after a pensioner from Peroor, Kottayam filed a complaint. Since then, victims have surged, with some having invested up to Rs4.5 crore or selling property to invest life savings.

How they vanished?

According to Onmanorama, the family owned a fully furnished 1615-sqft 3BHK flat at Bhattarahalli near KR Puram, which they had bought for around Rs1.1 crore but resold it — along with all the furniture — for something well below Rs 1 crore.

They also sold their cars, and CCTV visuals accessed by the police reportedly show them leaving with suitcases on July 3. They reportedly withdrew funds from bank accounts, too.

These point to meticulous planning, feel the victims. According to Onmanorama, the couple had hiked the interest rates aggressively on the deposits in the recent past, reveal the complaints lodged by investors at Ramamurthy Nagar police station.

Now, the police have reportedly collected passport details to find out whether the couple has left the country. The couple’s daughter reportedly lives in Bengaluru while one of their sons lives in Goa and another in canada. The daughter is unreachable as well, while the son in Toronto has reportedly also gone incommunicado after some investors could briefly contact him.

Meanwhile, investors are connecting on WhatsApp, filing complaints, hoping to recover some of their losses from a scheme built on false trust.

Stephen N RSenior Associate Editor

A Senior Associate Editor with more than 30 years in the media, Stephen N.R. curates, edits and publishes impactful stories for Gulf News — both in print and online — focusing on Middle East politics, student issues and explainers on global topics. Stephen has spent most of his career in journalism, working behind the scenes — shaping headlines, editing copy and putting together newspaper pages with precision. For the past many years, he has brought that same dedication to the Gulf News digital team, where he curates stories, crafts explainers and helps keep both the web and print editions sharp and engaging.