Cyberabad economic offences wing (EOW) arrested one Malineni Seetha Ramaiah for allegedly cheating members of a chit fund of Rs 2.65 crore, under the name of an unregistered company, Somasekhara Fin Corp. A case was registered under the Bharatiya Nyaya Sanhita and the Telangana Protection of Depositors of Financial Establishment Act, 1999 against Ramaiah.
The accused was arrested based on the complaint of Dabattula Rajesh Kumar, a resident of Gajularamaram. Police said Ramaiah was running a monthly chit fund scam along with his son-in-law Murali Krishna. The accused was maintaining monthly chits for 30 years now.
The accused cultivated trust among residents of his colony. Believing him, many people subscribed to the chit fund. The accused used to maintain chits worth `1 lakh, `2 lakh, `5 lakh and `10 lakh chits on commission basis.
The accused collected a total of `2,65,94,670 from the customers. In July, 2024, the accused ceased the process and assured the people that they would get their money back in a couple of days..