Hundreds of depositors cheated as two chit fund cos closed
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Last Updated: Sunday, March 21, 2010, 22:31
  
Vijayawada: Hundreds of depositors from small and middle class families including retired persons have been cheated by two chit fund finance companies owned by one K Umamaheswarudu, as the two companies have been closed, police said.

The two finance companies belonged to a single family.

Umamaheswaradu started Sai Vuma Chit Fund company and Vuma Maheswara Finvest Company 20 years ago and he became popular.

Particularly one community from Satyanarayanapuram locality believed him totally and deposited their savings in his chit fund companies.

For a long time, he regularly repaid the deposits with interests and met all commitments without fail. Along with these finance companies, he invested huge amounts in real estate at various places in Hyderabad city and other places of the state. He also started a hotel near Vijayawada Highway.

Since a few months, he has been postponing all repayments and re-writing all promisory notes instead of clearing them. All of a sudden, two days back, some of the investors, who have not received the payments in time, filed complaints with Satyanarayanapuram police. This revealed the total financial position of Umamaheswarudu.

Since Sataruday, a number of depositors filed complaints against Umamaheswarudu and are seeking the police help to get their dues from him. Satyanarayanapuram Circle Inspector SravanaKumar told PTI that as many as 190 depositors have filed complaints against Umamaheswarudu and other depositors are watching the situation.

He said that cases have been registered against him under sections 420 of IPC and also under the provisions of Andhra Pradesh Protection of Depositors of Financial Establishments. He informed that though he was not taken into custody, properties belonged to him and his family members are being identified. Assistant Commissioner of Police A Subba Rao told PTI that this is a white collar crime and needs a detailed investigation.

One of the depositors Ch Veera Bhadra Murthy said that Umamaheswarudu has been postponing repayments since a long time, he cheated many small investors, but remitted deposits of well to do and influenced investors. Most of the depositors who suffered with the closure of the two chit fund companies are small, retired and daily wage workers.

There are speculations that some cinema actors and directors who previously invested in these two firms somehow saved themselves by registering properties of Umamaheswarudu on their names. An influenced doctor from the city also did the same by taking over some property of Umamaheswarudu.

Umamaheswarudu has to pay more than Rs 100-crore to his depositors. This is the fourth financial institution closed and cheated the depositors in the city in recent months. previously, Sailata Chit Fund company promoted by a retired police officer cheated retired police personnel to the tune of Rs 40-crore. Later, Anupama chit fund Company cheated depositors to the tune of Rs 100-crore.

Another Vasudha Co-operative Socity also cheated the investors by more than Rs 10-crore.

PTI


First Published: Sunday, March 21, 2010, 22:31


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