Cyberabad cops arrest one in Rs 2.79 crore chit fund scam

Hyderabad: The Economic Offence Wing (EOW) Police of Cyberabad arrested a person who was involved in Cheating, Criminal Breach of Trust and collected money from chit customers to a tune of Rs 2.79 crore.

Disclosing the case details, DCP EOW Cyberabad K Prasad said that the accused was identified as Appampally Surya Pratap Reddy, a resident of Chanda Nagar, Serilingampally Mandal, Ranga Reddy District. The complainant is Nasar Khan, and he is also a resident of Chanda Nagar.

Brief facts of the case

The DCP said that Surya Pratap Reddy has been running monthly unregistered private chits in his house at Chanda Nagar for 14 years. He developed a lot of trust and confidence and faith in the residents of his locality and surrounding areas of Miyapur, Kukatpally, Patancheruv. Believing him, several residents in the locality joined as subscribers of the chits.

Surya Pratap Reddy used to maintain Rs. 1 lakh, 2 lakh, 5 lakh, Rs 10 lakh and 25 lakhs chits on a commission basis. In all, he collected Rs 2,79,57,438 from (80) subscribers in the name of monthly chits. All of a sudden, he locked his house and escaped from the locality. Reddy was arrested at Karmanghat, Prasad said.

Based on a complaint filed by Nasar Khan, a case was registered under sections 420, 406 IPC & Sec. 5 of the Telangana Protection of Depositors of Financial Establishment Act- 1999 of EOW PS, Cyberabad, the DCP added.

Public Advisory

The Cyberabad EOW Police advised the public to be aware of private chit funds and not to become subscribers to any unregistered chit funds. The department is committed to prosecuting fraudsters, cheaters and ensuring justice for victims.