A scam involving Rs 500 lakhs rocked Mizoram state in northeast India in the last week of October 2008 and put Burmese traders in a spot. The Burmese were said to have faced a massive loss, sources said.

The scam was by the 'one week bank' or Chiahpuam bank as the interest it paid was higher than any other bank which could match the high interest. The bank cheated deceived all the depositors as well as the money collectors.

"The interest was so high that it attracted many people. Burmese traders also felt that it was more beneficial than traveling to Mandalay and Muse areas. But now they have lost all their invested money," said the source

This investment bank was operated illegally and it gave up to 40% interest (on every Rs. 100) per month. People in Mizoram people got involved in this investment from September 2008.

In one week crores of rupees had been invested by businessmen, sellers, handloom owners, officers and government department staffs but the rotation of money became irregular from the last week of October. At the same time the main owners ran away.

The depositors are at a total loss and cannot sleep nights. Some are staying at the police station day and night.

"They repaid us the exact amount of our capital and interest whenever we wanted to withdraw money before. That's why people trusted them and invested lots of their money," he added.

The main role was played by Mrs. Lalmuanpuii who had run away.  But finally, she was arrested on 9 November 2008 in Karimjan, outside Mizoram state. Now she is in Aizawl police station.

Before her arrest Mizoram police seized Rs. 241 lakhs, 17 vehicles and 16 cheque books. They also arrested 26 money collectors.

The depositors' money was submitted to collectors who put it in the so called bank.

Now there are more than 500 FIRs (First Information Report) in the Mizoram police station as the depositors want their money back.

"The sad thing is that some had taken money from others and put it in the one week bank to get interest. But now they have been deceived and they cannot pay back the money.

A source said that the form of investments depended on the money exchange mode where Myanmar Kyats was bought with Indian Rupees, after that the Kyats were exchanged to US Dollars. Finally, the dollars were exchanged again with India Rupees.

Now thee Burmese traders are trapped by the deceptive 'one week bank' and they cannot continue their own business. They are waiting for the Mizoram government to do something. For the government it is a headache as the state election is approaching and campaigning has begun.