Chit fund organisers and fly-by-night companies are having a field day in Krishna district, especially in the rural areas. Recurrent cases of such firms duping thousands of people have posed a challenge to the police.
The report compiled by the Krishna District Crime Records Bureau (DCRB) this year reveals that the financial fraud cases are on the rise in the district. As many as 203 cases related to frauds involving chit fund firms and unregistered companies were reported in 2014, suggests the document.
The chit fund organisers collect money from the vulnerable individuals on weekly or monthly basis by promising high return on their deposits. “The firms gain credibility by paying the promised return to a few beneficiaries during the initial months of their operation and suddenly disappear from the area with the deposits. This is the strategy to dupe innocent people,” Bandar Divisional Officer K.V. Srinivasa Rao told The Hindu .
In 2012 and 2013, the district saw 163 and 148 such cases respectively, which clearly indicates the gradual increase in the financial frauds in the past few years. Further, police is facing a lot of hurdles during the investigation of the cases as majority of the financial deals are being done on the basis of a vocal agreement. “Of the total 203 financial cheating cases, more than 140 cases are still under investigation,” according to the DCRB report.
“One has to confirm the registration status of the Company before opting for the schemes,” suggests a senior police officer.
