Hyderabad: In a shocking case of financial fraud, a chit fund owner has allegedly absconded after defrauding over 2,000 investors of more than Rs 100 crore. Victims, primarily small workers, who had invested their hard-earned money in chits, gathered at the accused’s residence in distress after he vanished without repaying their funds.
According to the victims, the accused, identified as Pullaiah and his wife Bhu Lakshmi, hail from Chandana Lakshmipalli village in Yadiki Mandal, Anantapur district, Andhra Pradesh. The couple had been residing in Hyderabad for the past 18 years and is currently staying in a C-type colony near Ravindranagar in BK Guda.
Pullaiah initially worked as a casual labourer, but soon established connections with locals and ventured into the chit fund business, which he ran for the last 15 years. Managing chits ranging from Rs 5 lakh to Rs 50 lakh, he quickly amassed wealth, transitioning from a modest hut to a luxurious home. Instead of disbursing funds to investors, he allegedly reinvested the money, promising high returns while continuing to lure new members.
Victims reported that when they demanded their due payments, Pullaiah assured them that funds would be disbursed between February 23 and 26. However, on February 21, he and his family absconded, switching off their mobile phones. By Wednesday afternoon, over 700 victims had gathered at his residence, expressing their anguish. Several women were seen breaking down in tears over their lost savings.
Investigators suspect that Pullaiah lived an extravagant lifestyle, financing it through fraudulent investments. Victims revealed that his residence housed five money-counting machines, indicating large-scale cash transactions.
Despite the magnitude of the scam, SR Nagar police stated that no formal complaints had been filed as of Wednesday evening. Authorities are urging victims to come forward and lodge complaints to initiate legal proceedings against the accused.
As the number of affected investors continues to rise, officials warn against unregulated chit fund investments. Authorities are expected to launch an investigation into the case, tracking down Pullaiah and his associates. Victims are now demanding swift police action to recover their money and bring the fraudster to justice.
Read more: Telangana Faces Rising Cyber Threats Including Ransomware Attacks, Digital Frauds: Report
