The Vizag-based company runs a chit fund, has real estate interests, and has mobilized deposits worth Rs.15 crore from 20,000 customers through its 5,000-strong agent network across the state.
Even as hundreds of investors of Abhaya Gold being duped recently by the company is still fresh in public memory, yet another finance company, Sri Chakra Gold Farms and Villas India Limited, downed its shutters taking thousands of investors and company agents for a ride.
Some 20,000 customers deposited Rs.15 crore through the company's 5,000- strong agent network spread in several districts in the State. It also runs a chit fund and is engaged in real estate business.
The issue came to light when hundreds of agents and customers whose matured deposits were not paid for a couple of months came to the city office only to find the premises locked and all cell phones of the company switched off or out of reach. The company ran Sri Chakra Shopping Mall in the building financed by Central Bank of India. Even the mall downed its shutters.
The bank officials who learnt about the commotion at the shopping mall rushed to the place and locked the premises in a pre-emptive move to stall possible looting. Hundreds of customers and agents marched from the office located near Poorna market to the office of the Commissioner of Police where they were told to lodge a complaint with the Two Town police. However no complaint was lodged with the police till evening.
Reddy Manoj Kumar deposited Rs.3,600 in a span of one year at the rate of Rs.10 per day. He had been promised a payment of Rs.4,000 after maturity of the bond. The date of maturity was March 11, 2013 but the promised amount had not been paid even after three months. The security bond also mentioned a plot located in Pathabaggam village in Gajapathinagaram mandal in Vizianagaram district as collateral security for the depositor.
Another depositor Sreenivasa Rao who paid Rs.12,000 in a span of one year was promised a payment of Rs.13,500 on May 27, 2013, the date of maturity, but the company managers kept telling him that the amount could not be paid due to certain signatories being out of station. The man came to the office on Monday only to find the premises locked and the responsible officers out of reach to the agents and depositors.
Similar are the cases of Appalakonda, Leela Kumari and a host of others who staged a demonstration outside the office of the Police Commissioner. Adam, an agent from Gudivada in Krishna district, said that he generated business worth Rs.70 lakh for the company but it has defaulted on payments worth Rs.10 lakh to customers whose bonds matured a couple of months ago.
The Chairman of the company is N.Narendra and his wife Aruna Devi is the Managing Director, while General Manager N.V.Suresh and Executive Director N.Anil Kumar are brothers. The company appears to be a family enterprise.