Ambikapurc | Police in Chhattisgarh’s Surguja district have arrested two officials associated with a chit fund company accused of duping investors of more than ₹9.26 crore by promising to double their money in a short period. The case has once again raised concerns over the functioning of unregulated investment schemes targeting rural and economically weaker sections of society. Investigators say the probe is now expanding to trace other accused persons as well as the financial transactions linked to the fraud.
The case pertains to the Gandhinagar police station area, where a complaint was filed in 2024 by Mainpat resident Devaraj Yadav. According to the complaint, “Welfare Building and Estate Private Limited” had opened an office in Namnakala and lured people into investing money by offering unusually high returns. Company agents allegedly travelled from village to village convincing people that their investments would multiply within a short duration. Trusting these promises, many villagers, labourers, small traders and low-income families invested their lifetime savings into the scheme.
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During the investigation, police found that the company had built a well-organised investor network. Agents were reportedly recruited on a commission basis and encouraged to bring in new investors continuously. Authorities believe the company collected crores of rupees through numerous small deposits made by unsuspecting investors. Police officials said the accused had opened accounts in multiple banks to deposit and route investor money while continuing to reassure victims with false promises of high returns.
An FIR was registered earlier against the company’s director, advisory head and other office-bearers. Investigators also found that the company allegedly had no approval from the Reserve Bank of India or any competent regulatory authority to run investment schemes. Despite this, the company aggressively promoted its plans in rural areas and expanded its investor base through local agents and word-of-mouth publicity.
During the course of investigation, police detained Akhilesh Kumar Prajapati and Balram Pathak, both residents of Palamu district in Jharkhand. According to investigators, the two admitted during questioning that they played an active role in promoting the company and mobilising investments from the public. Officials suspect that both accused were directly involved in the company’s expansion and investor outreach operations. Authorities are now tracing the flow of funds and examining whether the money was diverted into properties, personal investments or other financial channels.
Sources associated with the investigation said many victims had invested their savings earned through farming, labour work and small businesses. Some were also persuaded by relatives and acquaintances who themselves had been influenced by company agents. Trouble began when investors failed to receive promised returns and company representatives gradually stopped responding to calls and inquiries. This eventually led victims to approach the police with complaints.
Experts dealing with cyber and economic offences say such chit fund networks often target small towns and rural populations where awareness regarding financial regulations and legal investment channels remains limited.
Renowned cyber crime expert and former IPS officer Prof. Triveni Singh said, “Fraudulent investment and chit fund schemes still operate on the model of social trust and greed. Agents first build confidence among people and then lure them with promises of unrealistic returns. Before investing money, people must verify whether the company has proper registration and regulatory approval.”
Prof. Triveni Singh further stated that such networks frequently use digital payment systems, fake documentation and layered bank accounts to conceal the money trail. He added that banking records, agent networks and digital transaction analysis play a critical role in investigating financial fraud cases of this nature.
Police have produced both accused before the court and initiated further legal proceedings. Search operations are continuing to trace other absconding accused linked to the network. Investigators believe more names may emerge as the probe progresses, while victims now hope the legal process will eventually help recover at least a portion of their lost savings.
