Chit fund scams surge across Hyderabad, victims await justice

Fly-by-night chit fund business operators are luring the public and cheating them of their hard-earned savings in the city and its suburbs on a larger scale.

In recent months, several cases of the chit fund operators disappearing overnight after collecting huge amounts from the investors have been reported in the tri-commissionerates of Hyderabad, Cyberabad and Rachakonda.

The chit fund operators typically rent a house to set up an office in some locality, operate for a few years in the neighbourhood and gain the confidence of the investors. One fine night, they wind up the



business, vacate the house and disappear, only to be caught by the police weeks or months later.

“Most of them run illegal chit fund businesses. So there is no guarantee that the amount can be recovered easily from them. Either the chit fund operators are themselves duped by some investors or they start the business with an intention to cheat the public and create wealth,” said a police official.

The police explain that in such cases the police register a criminal case of cheating and under provision of the chit fund act and arrest the suspect and file a charge sheet in the court.