Rise in number of chit fund scams in Visakhapatnam, police on alert, CM seeks action

Visakhapatnam: Visakhapatnam has witnessed a significant surge in chit fund scams. As many as 24 cases have been reported between 2021 and 2023, involving cheating to the extent of Rs 6,48,76,651.

Despite the arrest of 72 persons, the recovery of lost amounts remains insufficient.

The fraudulent activities involve unauthorized operations that promise lucrative returns, collection of substantial deposits followed by acts of absconding, which leave the victims high and dry.

Such acts blatantly violate the Chit Funds Act, 1982 read with AP Chit Funds Rules 2008.

City police commissioner Ravi Shankar, under the directive of chief minister YS Jagan Mohan Reddy, has launched an initiative to combat the menace.

The commissioner emphasized the importance of verifying the chit funds' background and registration status. He cautioned the public against schemes promising unusually high profits within a short period and urged them to exercise due diligence before investing.

Citizens have been urged to report any suspicions of fraudulent activity. The commissioner provided contact information for reporting such cases to the police, including WhatsApp number 9493336633 and the city police helpline 112.