Five of family held in chit fraud case

All the five members of a family were arrested on Saturday for allegedly duping depositors by running an unauthorised chit fund company.

The arrested include Bolla Annapurna, Relangi Varalakshmi, Relangi Narsingarao, Bolla Suresh Kumar and Relangi Sreenubabu.

While Narasinga Rao and Varalakshmi are husband and wife, Sreenubabu is their son, Annapurna their daughter and Suresh their son-in-law.

According to Assistant Commissioner of Police (East Zone) D.N. Mahesh, Annapurna was running the unauthorised chit fund company for last 10 years with the help of her family members and amassed over Rs. 2 crore in the form of deposits from over 50 subscribers.

“So far only 15 have lodged complaints against them and basing on that we have arrested the family members. She has become bankrupt and the default so far has come to about Rs. 1 crore,” he informed the Press.

Two Town Maharanipeta Zone inspector R. Mallikarjuna Rao and his team are investigating the case. The accused have been booked under IPC 420 and section 4 of Chit Fund Act 1971.