Warangal: Warangal Police Commissioner Tarun Joshi has reportedly ordered an inquiry into three chit fund companies — Bhavata Sri Chits, Shubhanandini Chits, Achala Chits, Kanakadurga Chits and Akshara Chits — for deceiving their subscribers after several people have complained against them.
According to sources, the Warangal police have taken the promoters of the three chit fund companies into custody and started an investigation.
Sources said some chit fund companies formed a syndicate and allegedly diverted thousands of crores of subscribers’ money scam into real estate businesses. They have also allegedly defaulted on paying money to prized bidders for several months across Telangana, especially in the Warangal district and Hyderabad.
These companies have got access to public money by opening branches in both the Telugu-speaking states. They wooed people from the middle class by deploying hundreds of agents for enrolling the members in various chits ranging from Rs.5 to 50 lakh.
According to the sources, the companies stopped paying money to prized bidders, citing Covid-induced financial crunch and offered overpriced plots in lieu of money.
Thousands of customers, who regularly paid the chit instalment every month in hope of dipping into savings, are facing hardships to collect money from the chit fund companies after lifting their chits.
The chit fund companies, however, are resorting to several delaying tactics to subsequently force subscribers to agree to buy overpriced plots in their real estate venture. As part of the delaying tactics, they have been issuing defective cheques, which are not honoured by banks when they are presented for encashment.
According to the sources, many of these chit fund companies are backed up by political leaders. This made many customers fearful of complaining against them and are living under deep stress.
Recently, one of the subscribers, who was a prized bidder, came to the office of Shubhanandini Chit Funds along with his wife and children and threatened to commit suicide in front of the office. The chit fund company, however, did not pay a penny to him to date.
