Cyberabad Police Arrest Chit Fund Firm Addl Director for Duping Public of Rs 1.30 cr

Hyderabad: The Cyberabad police has arrested Samathamurthy chit fund company Additional Director and accused number three Kyatham Ganesh and busted a racket for cheating about 100 to 110 victims/public across Telangana.

The company cheated people mainly in Madhapur, LB Nagar and Kukatapally and collected huge amounts to a tune of Rs. 1.30 crores enticing them with bid auction in chit business after paying three months chit subscription amount, said M. Hussaini Naidu, Assistant Commissioner of Police, Economic Offences Wing (EOW), Cyberabad,in a release said here on Thursday.

A case under section 420, 406 IPC & Sec. 5 of The Telangana Protection of depositors of Financial Establishments Act-1999 was initially registered in Madhapur Police Station and it was later transferred to EOW (Economic Offences Wing) for further investigation.

The modus operandi is that, the accused Elupula Srinivas (A1) and his son Elupula Rakesh Varma (A2) hatched a plan to induce public and opened a chit fund company in the name and style of M/s Samathamurthy chit fund company Pvt Ltd as Directors and the same got registered at ROC, Hyderabad in the month of April 2023.

Srinivas has invested Rs. 10- 15 lakhs and got acquaintance with Kyatham Ganesh , resident of L.B.Nagar,as he was having past experience in opening chit fund companies and duping the public with false promises and joined him as Additional Director.

All the accused did not register at Assistant Chit Registrar (from now read as ACR) and also failed to deposit chit amount as security deposit with ACR intentionally.

The three accused recruited HRs and tele- callers and other office staff and with them they extended their chit fund company business and induced about 100 to 110 innocent investors and collected Rs. 1.30 crores on the fake promises that they will be providing auction for every investor in every 4th month of their enrolment in company and later duping them with false promises.

The modus operandi of the accused A1 to A3 are to induce the public with the version that they will be arranging chit bid amount in auction after paying/allowing three months subscription and from 4th month they are going to dupe the customers or investors with false promises, the release added.