KARIMNAGAR, FEBRUARY 21, 2024: The Karimnagar Commissionerate of Police have arrested Akshara Chit Fund chairman and four of its directors on the charges of cheating a retired government employee by not returning the chit amount and using the same for their personal needs.
Following a complaint lodged by retired government employee Sriram Venkat Reddy, the Karimnagar police have arrested Akshara Chit Fund chairman Perala Srinivasa Rao, its directors Sureneni Kondal Rao and Uppala Rajender and Puppala Rajender and Aluvala Varaprasad and produced before the court. The court had remanded them to 14 days judicial custody.
Retired employee Venkat Reddy complained that the Akshara chit fund had not refunded his chit of Rs 7 lakhs in spite of completion of the chit. Instead, they had utilised the funds for other purposes and denied the chit amount to the retired employee.
He lodged a complaint with Commissioner of Police Abhishek Mohanty on Tuesday. The Karimnagar Two town police registered a case under IPC 406 and 420 and also the Telangana Protection of Depositors of Financial Establishments Act of 1999 Section 3 and 4.
A resident of Hanamkonda in Warangal district, Perala Srinivasa Rao in association with Tirupathi Reddy started the chit fund in Warangal district. After exit of Tirupathi Reddy, Srinivasa Rao wife Perala Srividya joined in his place (she is A2 in the case). They appointed agents and opened 54 branches throughout Telangana state.
After the completion of chits, the chit fund denied the amount to the customers on various pretexts and later issued bonds and later renewed the bonds, but did not give the money. On the other hand, the chit fund owners were busy investing the amount in real estate and purchase of agricultural lands at the cost of customers hard-earned savings.
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