Hospital Employees Duped in Illegal Chit Fund Scheme, Organiser Jailed

Visakhapatnam: Manyala Varalakshmi was sentenced to two years in jail on Monday by the fourth additional chief metropolitan magistrate, T. Venkat Rajesh Kumar. She was also fined Rs 10,000 with an additional two months imprisonment in case of non-payment. Varalakshmi was found guilty of cheating employees of a corporate hospital in Visakhapatnam by running an unauthorised chit fund.

According to senior assistant public prosecutor Mylapilli Adinarayana, Varalakshmi operated the illegal chit scheme in Gollalapalem and Pithanidibba areas of the city. Eleven hospital staffers had joined the chit, each contributing Rs 13,000 per month. However, upon completion of the chit cycle, Varalakshmi failed to return the promised payout amounting to Rs. 18 lakh to the subscribers.

One of the victims, Siriki Leelavathi, filed a complaint with the Three Town police on January 11, 2020. Sub-inspector J. Dharmendra investigated the case and filed a charge sheet against Varalakshmi. Public prosecutor Adinarayana successfully presented evidence proving Varalakshmi’s guilt of cheating and operating an unauthorized chit fund under Section 420 of the Indian Penal Code (IPC) and Section 76 of the Chit Funds Act.