Chit-racket: DMK functionary held for cheating people

A local DMK functionary and his wife have been arrested for allegedly cheating people of over Rs 65 lakh in a chit-racket,police said today.

Police said Saravanan,Erode third ward functionary,and his wife conducted ‘unregistered chits’ and collected the amount from more than 500 people. When their deposits attained maturity,several people demanded their money but the payments were delayed and a few days ago,the couple absconded,police said.

Following a complaint,couple was arrested near a hotel last night,sources added.