One more fly-by-night finance company has downed its shutters after cheating gullible investors to the tune of Rs.5 crore. Four of the accused were arrested by the City Police.
Giving details to the media on Monday, Deputy Commissioner of Police (Law and Order) P. Viswa Prasad said that K. Vishnu Vardhan Goud, managing director, Surineni Upender, chief executive officer, Md. Jahangir, director had set up a fake money laundering finance company under the name and style of ‘Suraksh Infra Group’ at Akkayyapalem in the city on September 4, 2012. They introduced attractive deposit schemes with huge returns to attract the public like paying Rs.21,000 on a deposit of Rs.10,000 at the end of the 30 weeks at the rate of Rs.700 per week and in another scheme Rs.17,000 on a fixed deposit of Rs.10,000 in 60 days. They issued advertisements in the media to attract the depositors.
These schemes do not have the approval of the Reserve Bank of India. As many as 1,800 depositors fell into the trap and the company mobilised Rs.5 crore in a span of just four months and wound up its operations in January this year and escaped with the money by duping the investors.
Mr. Viswa Prasad said that one of the victims K. Govinda Rao of Munagapaka mandal lodged a complaint with the Fourth Town Police in the city and a case was registered under Sections 420 and 406 of IPC, Section 5 of the AP Protection of Depositors and Financial Establishment Act, 1999 and Sections 4, 5 and 6 read with 2 (c) of Prize Chits and Money Circulation Scheme (Banning) Act, 1978.
He said that the accused were arrested at the Railway Station on Sunday afternoon and a fourth accused Malla Rama Jagannadha Kumar of Mungapaka mandal, who was actively involved in luring customers, was also arrested.
The DCP said that Upender was also a key promoter in the Magic Resorts group, which was involved in a similar fraud. He appealed to the public not to fall a prey to such fraudulent companies, which lure them with high returns. Apart from the promoters and directors, active agents of the company would also be liable for arrest.
He appreciated Fourth Town Inspector Balasurya Rao and his team for the arrest.