VIJAYAWADA: With financial frauds such as chit fund scams, fake deposit schemes, and gold investment traps on the rise, Vijayawada City Police is planning to set up a special team to draft Standard Operating Procedures (SOPs) aimed at regulating unauthorised financial activities and protecting the public from falling prey to such schemes.
The move follows two major fraud cases reported recently in which the public suffered losses of over Rs 200 crore.
In the first case, more than 50 complaints were filed at Satyanarayanapuram Police Station against Muthyala Srinivasa Rao, who allegedly collected Rs 10 crore through unauthorised chit schemes by offering customers gold and attractive incentives.
Rao fled the city after failing to return the money. During investigation, police discovered that he lacked the necessary licence to operate financial schemes, violating the Andhra Pradesh Protection of Depositors of Financial Establishments Rules, 1999, and the Prize Chits and Money Circulation Schemes (Banning) Act, 1978.
“He lured the public with promises of high returns and used promoters to expand his scheme. We arrested him and recovered 600 grams of gold and 18 kg of silver,” said North Zone ACP K Sravanthi Roy. Rao has been remanded to 14 days of judicial custody.
