Investors Panic after Chit Fund Office Shuts

The Krishnalanka police Tuesday registered a case against the managing director of

Published: 02nd July 2014 07:56 AM  |   Last Updated: 02nd July 2014 07:56 AM   |  A+A-

02chit

VIJAYAWADA: The Krishnalanka police Tuesday registered a case against the managing director of Shubhadarsi Estates, a private chit fund company located at Labbipet in the city for cheating its customers. Investors panicked and thronged the Krishnalanka police station soon after news broke that Shubhadarsi Estates had shut down its office and the chief, P Shankara Rao, was taken into custody.

“We only had two months left to complete our chit and were supposed to get back the Rs 85,000 we invested. But then, when we went to the office today, the shutters were down,” said Aruna Kumari, a resident of Autonagar, who paid chit amount for 23 months.

G Rammohan Rao has been shuttling between Vijayawada and Hyderabad for the last six months to collect his Rs 10 lakh from the Shubhadarsi Estates. “The management of the chit fund company has been delaying my payment since December last. Even the Rs 2 lakh cheque they gave on June 12, to pacify me, has bounced twice,” he lamented.

B Murali, who deposited Rs 3,00,000, is yet to receive Rs 1,50,000 from the chit fund company. “I have been visiting the office for the last four months now that my sister’s marriage got fixed. But, managing director Sankara Rao has been dodging away and now, the office is closed,” he said.

It is said that the police received 35 complaints so far and the number of victims is likely to rise. The cops registered a case under Section 420 of IPC and Section 76 of the Chit Fund Act, and took up investigation.

Stay up to date on all the latest Andhra Pradesh news with The New Indian Express App. Download now
(Get the news that matters from New Indian Express on WhatsApp. Click this link and hit 'Click to Subscribe'. Follow the instructions after that.)

Comments

Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp