Cyberabad police arrests accused in Rs 2.65 crore Chit fund scam
Madhapur: The Economic Offences Wing (EOW) of Cyberabad Police has arrested a man accused of orchestrating a massive chit fund fraud that allegedly duped investors of Rs 2.65 crore.
The EOW team arrested Malineni Seetha Ramaiah, a resident of Ganesh Chintal, Quthbullapur. The police team arrested him in Nandigama, NTR district, Andhra Pradesh while he was on the run.
According to Cyberabad police, Seetha Ramaiah and his son-in-law Murali Krishna operated an unregistered chit fund company, Somasekhara Fin Corp, for three decades. The accused duo built trust and confidence among the residents of their colony and others.
“Believing them, the number of chit fund subscribers increased. The accused maintained Rs. 1 Lakh, 2 Lakhs, 5 Lakhs and Rs. 10 Lakhs chits on commission. They collected Rs. 2.65 crore from customers for monthly chits,” said Cyberabad police in an official statement.
Beware of unregistered Chit funds: police advise
The fraud came to light when Dabattula Rajesh Kumar, a resident of Gajularamaram, filed a complaint with the EOW. In July 2024, the accused informed customers they would stop chits and assured them to return their money within days. Suddenly, the accused closed their house and escaped from the locality along with their families, added police.
The police registered a case under Section 316(2) and 318(4) of the BNS Act, and Section 5 of the Telangana Protection of Depositors of Financial Establishment Act-1999. The accused was brought back to Hyderabad on a transit warrant and produced before the court.
Cyberabad EOW Police advised the public to avoid private chit funds and not become subscribers to any unregistered chit funds. The department is committed to prosecuting fraudsters and ensuring justice for victims.
