Who is Ramavath Balaji Naik, the mastermind behind Rs 50 crore Nalgonda financial fraud

Nalgonda: Once a small-time ice-cream seller, Ramavath Balaji Naik reinvented himself as a `financier', only to become the mastermind behind one of Nalgonda district’s biggest financial frauds.

Ramavath Balaji Naik was arrested by the Nalgonda District Police for defrauding innocent people to the tune of nearly Rs 50 crore.

District Superintendent of Police Sharath Chandra Pawar cautioned citizens not to fall prey to fraudulent moneylenders offering unrealistic returns.

From small business to big scam

Balaji Naik, a native of Palugu Tanda, Vaddipatla Village in P.A. Pally Mandal, failed to complete his degree in 2019. To make ends meet, he borrowed Rs 5 lakh and started an ice-cream business, but the venture failed.

Seeking quick profits, he ventured into real estate and soon began posing as a private financier, offering 6% monthly interest to attract investors. Initially, he paid interest promptly, winning the trust of locals and creating an impression of a successful business operation.

How he fooled the Public

Police investigations revealed that Naik collected crores of rupees from depositors through relatives and local agents, mostly from tribal tandas and nearby villages. He issued promissory notes to investors and maintained ledgers to appear legitimate.

To sustain the illusion, he regularly paid interest to early investors using new deposits, a typical Ponzi-style operation. As word spread, more villagers invested, believing the scheme was genuine.

However, when repayments piled up and new deposits dried up, Naik failed to return the principal amounts. He then absconded, leaving scores of depositors in financial distress.

Lavish lifestyle built on Public Money

Instead of using the funds for business, Naik splurged on personal luxuries. He purchased agricultural lands, houses, high-end cars, and bikes in his and his relatives’ names.

Police said he used the scam money to buy a Fortuner and a Scorpio worth Rs 80 lakh, and properties in Miryalaguda, Hayathnagar, Nereducherla, and Palugu Tanda. The total value of seized assets is estimated in crores.

Assets and Evidence Seized

During raids, police recovered: Two luxury cars (Fortuner & Scorpio) worth Rs 80 lakh, property documents of lands and houses in multiple locations, 36 issued and 77 blank promissory notes, seven mobile phones worth Rs 5.5 lakh, Registers and Excel sheets containing detailed transaction records.

Cases and Legal Action

Three cases have been registered against Naik at Gudipally Police Station under Sections 316(2) and 318(4) of the Bharatiya Nyaya Sanhita (BNS) and Section 5 of the Telangana Protection of Depositors Act, 1999 — Crime Nos. 153, 154, and 157 of 2025.

He has been arrested and remanded to judicial custody, while police continue efforts to trace and seize benami assets. The authorities said that, after completing the due legal process, efforts will be made to refund recovered funds to the victims.

SP’s caution to Public

SP Sharath Chandra Pawar, IPS, appealed to depositors not to take extreme steps under financial pressure and to approach the Gudipally Police Station with the necessary documents for assistance.

“Fraudsters often lure people with promises of quick and high returns. Citizens should verify the credibility of such schemes and avoid unregistered moneylenders,” the SP advised.

Police awareness drive

The Nalgonda District Police have initiated awareness campaigns urging people to stay alert against fake financiers and illegal deposit schemes. They stressed that timely reporting can help prevent such large-scale financial crimes.