Eight arrested for cheating investors in buy back, gold, & chit schemes in Cyberabad

Cyberabad: The Economic Offences Wing (EOW) of the Cyberabad Police has arrested eight individuals for defrauding innocent investors under the guise of various fraudulent schemes. The accused collected large sums of money from the public, promising high returns through investment schemes such as the Buy Back Policy, Double Gold Scheme, and Gold Chits Scheme, but failed to repay the promised returns and principal amounts.

The arrested individuals have been identified as Kalidindi Pavan Kumar, Managing Director of 12 Wealth Capital Services Pvt. Ltd., and his associates Ravula Sathyanarayana, Boddulu Harikrishna, Valluru Bhasker Reddy, Pagadala Ravi Kumar Reddy, Kollati Jyothi, Kuralla Mounika, and Kurkula Lavanya. The complaint was filed by Nayani Harikanta, a resident of KPHB, Hyderabad.

According to the police, the accused operated three key fraudulent schemes:

1. Buy Back Open Plots Scheme: Customers were promised a 4% monthly return (Rs. 32,000 per month) for 25 months if they purchased a minimum of 2 Guntas (approximately 2,400 square feet) of land for Rs. 8.08 lakh, including registration charges. Business associates were given a 1% commission for each customer they enrolled.

2. Double Gold Scheme: In this scheme, customers were encouraged to invest up to Rs. 4 lakh or more. In return, they were issued a bond receipt, and after a 12-month period, were promised a gold biscuit worth Rs. 8 lakhs, stamped with a Switzerland seal.

3. Gold Chits Scheme: Customers were required to invest Rs. 5 lakhs in exchange for Rs. 15,000 monthly payments (3% interest) for 19 months. In the 20th month, customers were asked to contribute an additional Rs. 15,000, after which the company promised to return their Rs. 5 lakhs investment, totaling Rs. 8 lakhs.

The accused lured over 3,600 investors, collecting approximately Rs. 300 crores in the process. However, they failed to pay out the promised returns or repay the original investments.

A case has been registered against the accused under various sections, including Sections 316(2), 318(4), 61(2) BNS, and Section 5 of the Telangana Protection of Depositors of Financial Establishments Act, 1999.

The case is being investigated by Inspector S. Anjaneyulu of the EOW under the supervision of Deputy Commissioner of Police K. Prasad.

Advisory to the Public:

K. Prasad, Dy. Commissioner of Police, EOW, Cyberabad, has issued a public advisory urging citizens to be cautious of unauthorised layouts and fraudulent schemes. He warned the public against falling victim to such scams and assured that the police are committed to prosecuting fraudsters and bringing justice to the victims.