According to police, about six months ago, the suspects floated the fraud chit fund company with adequate employees to attract people to invest in the schemes run by the chit fund company.
Published Date – 7 February 2024, 09:32 PM
Hyderabad: The Madhapur police arrested two persons on charges of running an illegal chit fund company and cheating investors to the tune of Rs 2 crore on Wednesday.
The arrested persons were E.Srinivas and E.Rakesh Varma, both directors of Samathamurthy Chit Fund Company and resident of Mancherial district. The absconding person is Ganesh, another director of the company from LB Nagar.
According to police, about six months ago, the suspects floated the fraud chit fund company with adequate employees to attract people to invest in the schemes run by the chit fund company.
The suspects plotted to collect money from people and escape after shutting down the business.
“They used the money of the depositors for their personal use. They operated chit fund schemes ranging from 5 lakh to 1 crore. The company does not have any valid license from regulatory agencies to run the business,” a senior police official said.
As of now cheating amount is estimated to be nearly Rs 2 crore and may be increased based on the flow of victims. Total of 120 victims were identified and nearly Rs 5 crore is involved.
