Hyderabad: Goshamahal Police arrested an illegal chit fund operator for allegedly cheating subscribers and running unauthorised chit schemes in Hyderabad.
Police identified the accused as Motiram, 30, a businessman.
The case emerged after a subscriber alleged that the accused cheated him of more than Rs 2 lakh.
Police registered a case under relevant provisions of the Bharatiya Nyaya Sanhita and the Chit Funds Act.
Illegal chit fund operator accused of cheating investors
Investigators found that several investors had deposited money in the chit scheme.
However, police alleged that the accused failed to repay subscribers after the completion of the scheme.
Following the complaint, officers launched an investigation into the operation.
Acting on specific information, police apprehended Motiram from his residence.
Officials also seized a mobile phone allegedly used in connection with the chit fund activities.
Illegal chit fund operator faces further investigation
Police appealed to other victims to come forward with details and supporting documents.
Investigators said additional complaints could help establish the full extent of the alleged fraud.
Meanwhile, authorities continued efforts to identify other affected subscribers.
The operation took place under the supervision of Deputy Commissioner of Police G. Chandra Mohan and ACP K. Chandra Shekar Reddy.
Inspector B. Sravan Kumar, Sub-Inspector K. Laxmaiah and Constable Haridwar Singh participated in the operation.