"It is given to understand that Pushpam Appalanaidu, managing director of GoldQuest India, has been detained under the provisions of the Goondas Act by the Chennai Police on May 24, 2008, for alleged "offences".
GoldQuest asserts that "Appalanaidu is wrongly detained under the said Act," the company said in a statement.
The company is waiting to receive the papers filed by the police in order to review and consider the implications entirely and will take all steps to vigorously defend and contest these charges, it added.
"GoldQuest takes a strong view that no provision of the Goondas Act applies to Appalanaidu, who is a citizen of Malaysia," it added.
Appalanaidu and six other employees of GoldQuest India have been in police custody and subsequently in judicial custody, pending bail, since May 3, without any charges being brought to court until the charges filed against her by the police yesterday, the statement said.
GoldQuest India Pvt Ltd is a product company incorporated in India, retailing a wide variety of products which are distributed via its marketing arm QuestNet India.
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The Chennai police had arrested the employees, including Appalanaidu, after receiving 8,277 complaints of cheating from all over south India against the company.
The police had claimed that Rs 3.5 crore in cash and 87 kg of gold and silver coins besides valuables worth more than Rs 10 crore have been seized from the offices of the company earlier this month.