Chit fund fraud leaves investors in the lurch

A chit fund company wound up its operations leaving dozens of inventors in the lurch at L.B. Nagar on Sunday. The total amount involved is estimated to the tune of over Rs.1 crore.

The fraud came to light when one of the aggrieved investors A. Babu lodged a complaint with the L.B. Nagar police, who registered a cheating case against the firm owner M. Narayana Rao and probing into transactions of the chit fund.

The complainant said that he paid Rs.1.90 lakh to the firm in the name of chits but the management failed to return the amount. Rao started Medisetty Chit Fund firm in L.B. Nagar and opened branches at Kukatpally, Ameerpet and Vanasthalipuram, according to police.