Crackdown on multi-crore deposit scam: Four agents arrested in Nalgonda

Nalgonda police have arrested four agents linked to a Rs 57 crore Ponzi-style scam led by Ramavath Balaji Naik. Over 2,500 tribal wage earners were defrauded through false promises of high returns.

Nalgonda: The district police arrested four agents involved in a major financial scam with a Ponzi like operation on Friday. Over 2,500 investors, a majority of them wage earners, were defrauded to the tune of Rs 52 crore to Rs 57 crore. The racket was allegedly led by one Ramavath Balaji Naik, 30 and he was arrested by the police earlier this week.

A resident of Palugutanda village in Pedda Adiserla Pally (P.A.Pally mandal), Naik began his fraudulent venture after suffering losses in his ice cream vending and real estate businesses.

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Borrowing an initial Rs 5 lakh from relatives, he quickly expanded into the high-yield investment scam, promising depositors up to 240 per cent annual returns. It looked lucrative for the investors as legitimate interest offered by banks ranged from 7 per cent to 8 per cent.

Operating from Devarakonda town and nearby mandals, Naik expanded his illegal operations targeting vulnerable tribal communities in remote hamlets like Puttangandi, Gaddamiditanda, and Chintaltanda.

Using word-of-mouth networks and local agents, he issued promissory notes to lure depositors paying out interest for the first three years to foster trust before abruptly halting payments six months ago.

The scheme’s collapse triggered widespread outrage, with the victims storming Naik’s house a few days ago. At least 2,508 persons lodged complaints.

The depositors were predominantly from tribal families. The police seized two SUVs worth Rs 80 lakh, 36 promissory notes, and seven mobile phones from his possession along with other valuables worth over Rs 7 crore.

A case has been registered under the Prize Chits and Money Circulation Schemes (Banning) Act, along with relevant sections for cheating and criminal breach of trust. Naik’s primary accomplices, Ramavath Vinod, Suresh, Chiranjivi, and Ramesh, all from Palugutanda were arrested. ASP Maunika said that all confiscated assets will be attached and distributed to victims through court.