Cyberabad cops nab Somasekhara Fin Corp operator in Rs 2.65 crore chit fund scam

Hyderabad: The EOW (Economic Offences Wing) Police of Cyberabad arrested a person for allegedly cheating people of Rs 2.65 crores through the Somasekhara Fin Corp chit fund.

The accused has been identified as Malineni Seetha Ramaiah, a resident of Quthubullapur, who has been charged with cheating and criminal breach of trust.

The accused was running chit business for 30 years

The case came to light after Dabattula Rajesh Kumar, a resident of Gajularamaram, filed a complaint against the chit company and its managers.

Malineni Seetha Ramaiah and his son-in-law Murali Krishna have been running monthly chits through Somasekhara Fin Corp, a private and unregistered chit fund company. Seetha Ramaiah is said to have been running a monthly chit business for 30 years.

The chit company has many subscribers as Seetha Ramaiah has built a lot of trust and confidence over the years. The accused used to maintain chits worth Rs 1 lakh, Rs 2 lakhs, Rs 5 lakhs and Rs 10 lakhs for a commission.

As per the latest chit collections, the accused collected Rs 2,65,94,670 from the customers. In July 2024, the accused informed the customers that they were going to stop managing chits and assured them that they would return their money within a couple of days.

However, the accused and his family vacated their homes overnight and fled. After a complaint was filed, Seetha Ramaiah was arrested in Nandigama in NTR district, Andhra Pradesh. A case has been registered under sections 316 (2), 318 (4) BNS and Section 5 of the Telangana Protection of Depositors of Financial Establishment Act-1999 of EOW PS, Cyberabad.

Public advisory

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