Chit fund operators vanish with Rs 12 crore

VIJAYAWADA: The promoters of Vijaya Krishna Permanent Company Limited, a city-based chit fund company, remained untraceable with the depositors lodged complaints with the Police of allegedly being cheated by the company.Police said the company owners had invested about Rs 12 crore collected from the depositors and suffered loss on their investments, which plunged the promoters into crisis. Unable to return the money to the depositors after the maturity period, the promoters of the company with their families vacated their office and house. Their mobile phones are also found switched off, the police said.Giving details on the case, Two Town inspector, S Prasda Rao, said they were expecting that that the deposits with the company would be around Rs 12 crores. However, the depositors are claiming that the total deposits would be more than that. The inspector said, the company has also two sister companies namely  Vijaya Krishna Mutually Aided Thrift Company Limited and Mohana Krishna Chit Fund Company Ltd and the promoter of the company are the family members of Gajavalli Nageshwara Rao, a noted charted accountant in the area.Police said Nageshwara Rao’s son Tulasi Shambu Prasad, brothers China Venakateshwara Rao and Narayana Rao had been running the three companies for the past few years and they closed down the Mohana Krishna Chit Fund in 2005.The company offices at Gajavalli Mansion, Velegaleti street near Fish Market in Kothapet were remain closed for the past few days with a notice on the board that the company would remain closed until August 22 due to audit. After the news broke out, five depositors of the company lodged complaints with Two Town police station that the company had allegedly cheated them and not repaid their money even after the maturity period, said S Prasada Rao.