Hyderabad: The Economic Offences Wing (EOW) of the Cyberabad Police on October 24, 2024, has arrested four individuals involved in an investment fraud that resulted in losses amounting to Rs. 24 crores. The accused are charged with cheating, criminal breach of trust, and criminal conspiracy after allegedly misleading investors under the guise of promising high returns.

The arrested individuals have been identified as Byra Chandra Shekar, Director of Squares and Yards Infra Pvt Ltd, resident of Moosapet, Hyderabad, originally from Chilakaluripeta, Andhra Pradesh (AP); Vemulapally Jahnvi, Director of Squares and Yards Infra Pvt Ltd, resident of My Home Avatar, Narsingi village, Hyderabad, originally from Vijayawada, (AP); Garimella Venkata Akhil, Director of Squares and Yards Infra Pvt Ltd, resident of Kukatpally, Hyderabad, originally from Ibrahimpatnam, NTR District, (AP); Reddipalli Krishna Chaitanya, Director of M/s Ad Avenues, resident of Miyapur, Hyderabad, originally from Vijayawada, (AP).

The complaint was filed by Allam Nagaraju, a resident of KPHB Colony, Hyderabad, originally from Vishakhapatnam, (AP). A case has been registered under Cr. No. 75/2024, invoking Sections 316(2), 318(4), and 61(2) of the BNS, as well as Section 5 of the Telangana Protection of Depositors of Financial Establishments Act, 1999.

Modus Operandi:

The police said that the Squares and Yards Pvt Ltd and Ad Avenues Pvt Ltd companies committed this fraud together. According to police investigations, the accused lured approximately 120 investors with promises of monthly returns through a buyback scheme. They offered a scheme where investors who deposited Rs. 17 lakhs would receive Rs. 30,000 monthly for 100 months, along with the registration of two guntas (267 square yards) of agricultural land in Tirumalagiri village, Balanagar Mandal, Mahaboobnagar District. The scheme included promises to plant sandalwood trees on the land, with a pledge to share 50% of the profit from tree sales after 13 to 15 years.

The accused provided Memorandums of Understanding (MOUs), lease deeds, and post-dated cheques as collateral security. However, after initially paying monthly returns for a few months, they defaulted on their promises and closed their company.

The investigation is being conducted by J. Venkateswarlu, Inspector of Police, EOW, under the supervision of K. Prasad, Deputy Commissioner of Police, EOW, Cyberabad.

Public Advisory:

K. Prasad, Deputy Commissioner of Police, EOW Cyberabad, issued a warning to the public, stating, “Be cautious of fraudsters and cheaters. Do not invest money without proper inquiry into promises of good returns. The department is committed to prosecuting fraudsters and ensuring justice for victims.”