2 Held for Rs 2-Cr Chit Fund Fraud in Hyderabad

The special team of Madhapur police arrested two chit fund organisers for cheating hundreds of gullible investors to the tune of Rs 2 crore across the state. The accused opened a chit fund company named Samathamurthy Chit Fund Private limited six months ago and were functioning in their three branches at Madhapur, LB Nagar and Kukatpally, the police said. The accused were identified as Elpula Srinivas, 47, Repula Rakesh Varma, 27, and Ganesh, 27, who is at large. The directors are native of Mancherial district.

According to police, over 120 from various districts invested their hard-earned money in the chit fund company who were assured and promised huge returns. Accordingly, the accused closed their business secretly and escaped with huge amounts, police said. “They were running chits to the value of Rs 5 lakh, Rs 10 lakh, Rs 25 lakh to Rs 1 crore in the name of Samathamurthy chit funds without any licence from the



authorities,” Vineeth G, DCP of Madhapur zone said in a press meet on Wednesday.

“During preliminary investigation, we found that the trio had cheated over 120 victims to the tune of Rs 2 crore. The amount is suspected to be much more. As per TS Protection of Depositors of Financial Establishments Act, 1999 we are going to attach the properties of the accused persons as per law,” the DCP said adding that as per the investigation they have identified 120 victims. People must verify whether the chit fund is registered or not. Investors should invest their hard-earned money in government mutual funds. 

The public advised to be aware with such cheaters and also requested to inform if they noticed any such persons to the police. Information can be shared through Dial 100 or through Cyberabad Whatsapp number 9490617444. Identity will be kept confidential.