HYDERABAD: The Task Force sleuths on Tuesday arrested a person who was into chit fund business and duped a number of people. He managed to collect Rs 50 lakh from 50 clients.
Police also seized a car, property documents worth Rs 30 lakhs and incriminating material from his possession.
Police told, they arrested Vuram Karunakar who has set up a bogus chit fund company, Siddi Laxmi Enterprises, at Krishna Nivas, Krishnapuri Colony, West Marredpally in Secunderabad.
He started the company without procuring a valid license from registrar office of chits in December 2010. He got published newspaper ads to gain credibility for his company, detailing the alluring offers like doubling of money within two months and arrangement of loans for the customer.
He went on to appoint agents to peddle offers to gullible customers.
People in need of money for education, hospital or other emergency, approached him and ended up giving away hard earned money to him. He kept on pillaging money from such people, and built an empire of lavishness around him. He owns three flats worth Rs 30 lakh, and a Tata safari car.