The Telangana Crime Investigation Department (CID) has arrested four individuals involved in a large chit fund scam in Hyderabad. The scam defrauded at least 1,300 people, causing a total loss of ₹70 crore. The arrests, made on Monday, mark a major development in the case, as many investors have suffered significant financial losses.
The accused have been identified as Chavva Kumar (50), Chavva Yadagiri (62), Chavva Chinna Esthari (60), and Chavva Venkatesh (58). They ran a chit fund scheme under the name Shankarpally Veerabhadriya Parapathi Sahakara Sangam. The scheme promised high returns on investments but failed to make payments, leaving investors helpless.
The fraud came to light after a complaint was filed by Pasham Venugopal Reddy, a resident of Nallakunta. The case was first registered by Shankarpally police in 2022 under several laws, including the Indian Penal Code, the Telangana Protection of Depositors in Financial Establishments (TPDFE) Act, the Chit Fund Act, and the Reserve Bank of India Act. Due to the large scale of the fraud, the case was later handed over to CID Cyberabad for further investigation.
Officials have urged more victims to come forward and share information to assist the ongoing investigation. This case highlights the dangers of unregulated chit funds and the urgent need for stricter financial regulations to prevent such scams in the future.
