Xito Consultancy in Cyberabad cheated 200 investors of Rs 2 crores; 1 held

Hyderabad: The Economic Offences Wing (EOW) Police of Cyberabad arrested a person for allegedly cheating people in the name of providing high returns. The accused and the company involved lured about 150-200 members by collecting around Rs 2 crores and cheated them.

Case details

The accused in the case were running a Xito Consultancy Services Pvt Ltd (XCSPL).

The company directors BN Satish, Avalakondappa Venkata Chalapati and other employees collected deposits from people promising high returns within a short period of time but they defaulted on the payments and returns.

Deputy Commissioner of Police (DCP), EOW Cyberabad K Prasad said that the accused was identified as Gadiraju Guruprasad Raju (32), financial advisor to XCSPL, a resident of KPHB, Hyderabad.

A case was registered under sections 406, 420, 120-B IPC and Section 5 of the TPDFE Act-1999 of PS KPHB/EOW, Cyberabad and charged with criminal breach of trust and cheating the Telangana Protection of Depositors of Establishments Act.

The DCP said that the complainant T Rajendra Prasad and other victims were lured by the accused and the company, making them deposit huge amounts i.e. crores of rupees in various instalments through the UPI IDs provided by XCSPL.

After three months of investment when the complainant and other victims tried to withdraw money, they couldn’t.

Later, the accused also did not respond to their calls and closed their office on the 11th floor of the Manjeera Trinity Building.

Modus Operandi

Prasad further said that the accused BN Sathish and Avalakondappa Venkata Chalapathi have floated Xito Consultancy Services in 2015 with a registered office in Bengaluru.

Later, they opened a branch office at KPHB in collusion with the other accused Gadiraju Rajendra Prasad Raju, Gadiraju Guru Prasad Raju, Pasam Venkat Prasad and Baireddy Jyothi. They lured innocent depositors by promising huge returns on investments.

They also created a website to enrol innocent depositors by offering to give 1:1 returns in three months and 1:4 returns in 1 year and the locking period is three months. The company will provide ‘X- Coins’ to the depositors/investors equal to their investment, he added.

The value of the ‘X-Coin’ varies from day to day. When the depositors requested to return their money, the accused company did not respond, failed to refund their investment as promised and closed the office. Thus, the accused lured the innocent public and collected to the tune of Rs 2 crores and cheated them, the DCP said.

Public advisory

The Cyberabad EOW Police hereby advised the public to be aware of the bogus companies which collect deposits in the name of high returns within a short time. The department is committed to prosecuting the fake companies and ensuring justice for the companies.