Warangal police arrest four-member gang for chit fund fraud

In Hanamkonda, a four-member gang running an illegal chit fund was arrested. Police seized cash, gold and documents. Over 28,000 people were cheated of Rs 11.39 crore. Police have frozen Rs 5.48 crore and urged public caution

Hanamkonda: In a joint operation by the Task Force and Palakurthi police, a four-member gang that was allegedly cheating the public under the pretext of high returns was arrested.

Police seized Rs 5.92 lakh, 684.5 grams of gold coins, 150 grams of gold ornaments, a car, mobile phones, a laptop, receipt books, a cash counting machine, cheque books, stamps and documents related to agricultural lands and house plots. The accused, Teppali Saidulu, Podila Suresh Kumar, Podila Sridhar of Suryapet and Manubothula Ramakrishna of Krishna district in AP, were running their operations with Palakurthi in Jangaon district as the base.

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Speaking to the media here on Wednesday, Commissioner of Police Sunpreet Singh said the main accused, Saidulu, had established a firm, ‘Hepzibha’, in his wife Narayanamma’s name in 2023. In 2024, without any government permissions, he started an illegal chit-fund business and lured people with a promise of high profits.

Each member had to pay Rs 6,000 to join. Out of this, Rs 4,000 was retained by the accused and only goods worth Rs 300 were given to members while showing their worth as Rs 2,000. Members were promised a return of Rs 1,000 per month for 20 months. Through agents in villages, the gang enrolled as many as 28,493 members and collected Rs 11.39 crore. By supplying undervalued goods, the gang further cheated people of Rs 4.84 crore. In view of several complaints against the firm and the possibility of the accused absconding with public money, police apprehended the gang, the CP said.

Investigation revealed that they deposited the collected money in 17 bank accounts and transactions worth Rs 5.48 crore were frozen by police. Over 10 cheating cases were registered against the main accused, Saidulu, in Medak, Suryapet, Yellandu and LB Nagar police stations.

The CP cautioned the public not to fall prey to bogus companies that promise unusually high returns in a short period. He appreciated West Zone DCP Rajamahendra Naik, Wardhannapet and Task Force ACPs Narsaiah and Madhusudan, Task Force Inspector Pawan, Palakurthi CI Janakiram Reddy, SIs Vamshi Krishna, Dilip and staff for nabbing the gang.