On Tuesday, the Cyberabad Economic Offences Wing (EOW) apprehended Appampally Surya Pratap Reddy in connection with a major chit fund fraud that defrauded over 80 investors of Rs2.79 crore. The arrest came after a thorough investigation into the unregistered chit fund operations that Reddy had been running for more than 14 years.
Reddy, a resident of the Miyapur area, had gained the trust of local investors from Miyapur, Kukatpally, and Patancheruvu by offering chit fund schemes ranging from Rs1 lakh to Rs25 lakh. These schemes operated on a commission-based model, attracting individuals looking for a safe way to grow their savings. However, without warning, Reddy abruptly closed down his operations and disappeared, leaving his investors in financial turmoil.
The victims, many of whom had invested their life savings, were left stranded as Reddy fled with the funds. The EOW has since launched a full investigation into the case, with Reddy being taken into custody for further questioning. The authorities are working to trace any remaining assets tied to the scam and provide restitution to the defrauded individuals.
