More than 500 customers lost crores of rupees after the owners of a private chit fund firm, Arunodaya Chits and Finance, did the vanishing trick and fled Palasa. The incident came to light after customers, learning that the owner Govinda Rao disappeared with his family, rushed to the company Thursday and demanded their money back.
Arunodaya Chits and Finance was reportedly started around 20 years ago and managed by S Govinda Rao, a resident of Palasa. The company has collected crores of money from over 500 people, promising hefty returns.
The company has been running in losses and Govinda Rao even attempted suicide once. After customers demanded their money back, Govinda Rao gave them promissory notes, assuring to return the money. However, he and his family fled the town a couple of days ago.
Palasa CI Radhakrishna registered a case.