Chit fund company dupes depositors of Rs 50 Cr
Vijayawada, Aug 17 (INN): A chit fund company has duped hundreds of people in Vijayawada of nearly Rs. 50 crore. The incident came to light when many residents of Vijayawada lodged a police complaint on Wednesday against the Proprietor of Vijaya Krishna Chit Funds.
They complained that the company duped them of nearly Rs 50 crores on the pretext of a chit business. According to police, Nageswara Rao, the proprietor of Vijaya Krishna Chit Funds, lured several customers by offering high interest rate and allegedly duped them after collecting nearly Rs 50 crore.
Nageswara Rao collected amounts in the range of Rs 10,000 to Rs 2 lakh from several depositors by assuring them to give high interests. 'From January last, he had not been giving any payments to depositors,'' the police said.
Nageswara rao had reportedly developed friendship with locals by doing many businesses. After gaining confidence of local residents, he lured them to invest in his chit fund business. After around 15 years of running the business, recently be became irregular in making payments and consequently, closed the office about seven days ago.
Smelling something fishy, the depositors and customers approached the local police and lodged a complaint. Police said a cheating case has been registered against Nageswara Rao and further investigations are on.
News Posted: 18 August, 2011