GUNTUR: Hundreds of investors in Narasaraopet have been left distressed after falling victim to a large-scale financial fraud involving the Sai Sadhana Chit Fund Company. The firm’s owner, P Pullarao, surrendered before Guntur police recently in connection with a real estate scam case.
Among the victims is K Madhava Rao (name changed), a retired government employee from Narasaraopet, who had been saving for his daughter’s wedding for 15 years.
Another investor from Santhamaguluru lost `40 lakh after depositing his chit fund savings as a fixed deposit with the firm. His dreams of owning a house have now been shattered.
According to reports, out of 619 customers, over 510 investors have lost their money, with the fraud amounting to approximately Rs 45 crore. However, local sources suggest the total scam could be as high as Rs 150-200 crore, including funds from both the chit fund and a real estate business operated by Pullarao and his family. The scam came to light after multiple complaints were lodged with the police across Palnadu and Guntur districts.
A fraud case was filed against Pullarao at Pattabhipuram police station. He surrendered to the Guntur district court last week and was remanded in custody until February 15. As the chit fund scam unfolded, Narasaraopet One Town Police filed cases against him and produced him in Narasaraopet Court on Monday, where he has been remanded until February 21.
Authorities have urged affected investors to come forward and submit their details for the ongoing investigation. Meanwhile, police have sent letters to revenue officials to red-list Pullarao and his family’s properties and freeze their bank accounts to prevent asset disposal.
Speaking to TNIE, Narasaraopet DSP K Srinivasa Rao stated that the total number of victims and the full extent of the scam are still being verified. “People from Guntur, Palnadu, and Bapatla districts are approaching us daily. Only after verifying documents can we confirm the total loss,” he said.
Local MLA Chadalavada Aravind Babu assured that the case has been escalated to HM V Anitha and CM N Chandrababu Naidu. “I have discussed the investigation’s progress with Guntur Range IG Sarvashrestha Tripathi and district SP K Srinivasa Rao. Necessary action will be taken to recover the victims’ money,” he added.
The police are now planning to seek custody of Pullarao for further interrogation to uncover additional details.
