The chit fund scam being investigated by the Madhapur police became bigger with 120 victims claiming to have lost over ₹5 crore. “The figure may go up as we collect more information from the victims,” Vineeth G, Deputy Commissioner of Police, Madhapur, said. After a series of ponzi schemes wreaked havoc in the past year, this is the first one to be reported in this year, Mr. Vineeth said.
This comes a day after the police arrested two persons in connection with a chit fund fraud amounting close to ₹2 crore, while the third suspect is absconding. The chit fund company did not have valid licences from authorities, the official said.
The accused, identified as Elpula Srinivas, Elpula Rakesh Varma and Ganesh (absconding), had started Samathamurthy Chit Fund Private Limited about six months ago and opened three branches at Madhapur, L.B. Nagar and Kukatpally with fake logos and documents. The trio allegedly deceived numerous innocent victims by promising huge returns on chits varying from ₹1 lakh to ₹1 crore, the official said. So far in the investigation, 120 victims had been identified from across these three branches.
The police filed a case under Sections 420, 406 of the Indian Penal Code and Section 5 of the Telangana Protection of Depositors of Financial Establishments Act, 1999. Investigation is under way and the police are in search of the third suspect.
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