The city police are close to cracking the Reddamma chit fund cheating case.
According to a top police officer, the investigating team is closing in on the mastermind, Reddamma, and five of her associates and they may be arrested shortly.
The Reddamma case had come to light a couple of days ago when subscribers of the chit fund lodged a complaint with the Two Town Police station stating that the chit fund company had downed its shutters and the persons running it were absconding.
The Reddamma Dasara Chit Fund Company, located in Rajarajeswaripeta, was involved in running chit funds and financial schemes that promised high returns. It was being run by Reddamma and only women were encouraged to invest in the schemes and join the chit fund groups. It is believed that housewives and small-time employees in the neighbourhood had put their hard-earned money in the company and the deposits had exceeded Rs.3 crore.
A few days ago when some women had gone to withdraw their money, they were asked to come a couple of days later and since last week the company organisers went missing.
