Telangana CID Cracks ₹70 Crore Chit Fund Scam, Four Arrested

Hyderabad: The Telangana Crime Investigation Department (CID) has arrested four individuals accused of orchestrating a massive chit fund scam that defrauded at least 1,300 citizens in Hyderabad, amounting to ₹70 crore. The arrests, made on Monday, mark a significant breakthrough in a case that has left scores of investors facing severe financial losses.

The accused, identified as Chavva Kumar (50), Chavva Yadagiri (62), Chavva Chinna Esthari (60), and Chavva Venkatesh (58), allegedly lured investors through their chit fund operation, Shankarpally Veerabhadriya Parapathi Sahakara Sangam. The scheme promised lucrative returns on deposits but ultimately defaulted on payouts, leaving victims stranded.

The scam came to light following a complaint from Pasham Venugopal Reddy, a resident of Nallakunta. The case was initially registered by Shankarpally police in 2022 under multiple sections of the Indian Penal Code, the Telangana Protection of Depositors in Financial Establishments (TPDFE) Act, the Chit Fund Act, and the Reserve Bank of India Act. Due to the scale of the fraud, it was later transferred to the CID Cyberabad for a detailed investigation.

Authorities have urged more victims to come forward with information to aid the ongoing inquiry. The case highlights the risks associated with unregulated chit funds, as well as the growing need for stronger financial oversight to prevent such fraudulent operations.