A suspected chit fund fraud involving nearly ₹5 crore has come to light in Hyderabad’s Rajendranagar area, where police have registered a case against a couple accused of collecting large sums of money from local residents and absconding without repaying investors. The incident triggered protests outside the couple’s house as anxious investors demanded recovery of their savings and immediate police action.
According to the police, P. Ashok and his wife had allegedly been running chit fund schemes in Budwel for several years. Investigators say the couple gradually earned the confidence of residents and attracted investors by promising attractive returns. Over time, many families joined the schemes and regularly deposited money through monthly instalments.
Police said the alleged fraud surfaced when several chit groups matured and investors sought repayment. The couple allegedly began delaying payments, initially citing various reasons. Residents later found their house locked, and the family had reportedly disappeared, raising suspicions that they had fled after collecting money from investors.
On Sunday, dozens of investors gathered outside the couple’s residence in Budwel and staged a protest, demanding the arrest of the accused and the return of their money. Protesters said their lifetime savings had become inaccessible and that many families were now facing serious financial hardship.
Victims told police that most investors belonged to middle- and lower-middle-income households. Many said they had invested money saved for their children’s education, weddings, medical treatment and other essential family expenses. Some claimed they had been contributing to the chit fund for more than 15 years and had regularly paid instalments during that period. Because earlier payments were reportedly made on time, they had developed strong trust in the scheme before the couple suddenly disappeared.
Rajendranagar police have registered a case based on the complaints and launched an investigation. Officers said efforts were under way to trace the accused and identify their possible locations. Investigators are also examining the total amount collected through the chit fund schemes, the number of affected investors and the channels through which the money was allegedly handled.
Financial experts caution that investors should verify the legal status, registration and operational credibility of any chit fund before investing. They warn that investing solely on the basis of personal acquaintance or the long-standing presence of a local scheme can expose families to significant financial risk. Experts advise investors to preserve all receipts and records, file complaints promptly in case of irregularities and invest only through properly registered financial institutions or authorised chit fund companies.
Police said the investigation has been intensified with the twin objectives of arresting the accused and recovering the investors’ money. The full scale of the alleged fraud and the number of families affected are expected to become clearer as the inquiry progresses.
