The company had allegedly duped customers of more than Rs. 100 crore
The special police team that is handling the Sri Abhaya Gold scam case, took its managing director Srinivas into custody on Thursday, on charges of duping the customers of crores of rupees. It is alleged that the company, which was running five projects in real estate, construction and investments, had collected more than Rs. 100 crore from the customers in the State.
A few days ago, the customers lodged a complaint with Suryaraopet police alleging that Sri Abhaya Gold group had deceived them by promising them to offer gold if they invested money in the company. The complainants had said that the management had failed to return the money and staff members were absconding.
The customers staged demonstrations in front of the Abhaya Gold offices in other districts also demanding repayment of their money. Cases were also registered against Abhaya Gold in West Godavari, Khammam and other districts.
The company is also operating in the neighbouring States, said the police.
“Based on the complaint lodged by the victims in West Zone in the city, the special police team took Srinivas into custody.
Cases were registered against the management on charges of cheating and other sections”, said a police officer who is investigating the case.