VIJAYAWADA: Customers of real estate and finance company ‘Welfare Group’ on Wednesday lodged complaints with the Gudivada police stating that the management of the firm failed to repay their deposits.
Around 50 women customers from Gudivada, Nandivada, Hanuman Junction and other places approached Gudivada II-town police alleging that the firm cheated its customers to the tune of Rs 5 crore and that they were not repaying their investments despite completion of the tenure.
The customers alleged that former MLA and chairman of the AP Education and Welfare Infrastructure Development Corporation (APEWIDC) Malla Vijay Prasad was behind the scam. The women further alleged that Prasad brought pressure on police not to file complaints from them.
Gudivada DSP N Satyanandam told TNIE that police are investigating the complaints and assured the customers that action will be taken against those responsible and justice will be rendered.
He further said the majority of the customers are poor and from the middle class. They have invested their savings in the company believing that it would yield good returns. “A case will be registered after taking legal opinion.”