VISAKHAPATNAM: Visakhapatnam police arrested six individuals on Saturday in connection with a major fraud case involving a cooperative society that defrauded people of around Rs 100 crore, while the primary suspect (founder), retired IRS officer Sivabhagya Rao, remains at large.
These individuals formed a cooperative society named Sneha Max Society and collected deposits from around 2,500 people, primarily targeting Scheduled Caste, Scheduled Tribe, and minority employees by offering high interest rates of up to 12 per cent.
Police arrested the society’s directors and staff, who have been remanded in custody for 14 days. A search operation is currently underway to apprehend Sivabhagya Rao, the key suspect behind the scam.
Visakhapatnam Commissioner of Police Sankha Brata Bagchi stated that many victims, including pensioners, had deposited their life savings in the society. “Our primary objective is to recover the money and return it to the victims. We have taken this case very seriously,” he said.
The investigation is being handled by Dwarka PS, with officers having already seized and frozen the society’s assets. Extensive searches are ongoing to track down the absconding suspect. The Police Commissioner assured that all individuals involved in the scam will be apprehended and brought to justice, despite the society’s attempts to secure anticipatory bail and file quash petitions.
He added that once the main suspect is captured, further inquiries will be conducted to ascertain the total amount and those involved.