Chit fund units cheat public in Visakhapatnam

Visakhapatnam: The unearthing of several unauthorised chits being run by various families once again brings to light that Vizagites are still falling a prey to such chits and attractive schemes, despite a number of such cases being reported.

Not only the middle class people but also some elite group of people were  victims in the illegal chit frauds.

At least two to three groups (cheated by chit organisers) on Monday approached the police commissionerate to meet either city police chief or deputy commissioner of police demanding action against the chit organisers, who flee with collected money and also demanding action to retrieve their investment from the mushrooming chit fund companies.

One of the victims, K. Lakshmi, wife a state government employee and residing at Akkayyapalem in the city, said she and her neighbours, mostly housewives and working women, had invested in two chit schemes. 

The investment ranged from Rs 100 to Rs 500 daily for an year. For instance, if someone pays Rs 300 daily for six months, the couple who started an unauthorised chit had promised returns of about Rs 66,000. So, many people had joined the chit for huge interest.

However, the money was not returned to investors and the shocking news is that the couple fled from the city, she added.

“We approached the cops during grievance day, but the cops are saying it is difficult to return the hard  earnings,” she added.

“During the grievance day, I receive at least three complaints on the unauthorised chits and most of the victims are housewives and working women who had invested in the chit without the notice of their family members,” said DCP (Law and Order) M. Srinivasulu.

The latest trend of the chit frauds is a couple starts a chit and collects money from their community people only by promising hefty returns and flees with collected money.

Gullible people are lured by the high interest rated and returns that these chit organisers offer and fall a prey to it.

Interestingly, people still believe the chit and investing despite the repeated instructions,” said the DCP.