Visakhapatnam City Police arrested the racketeers of Sri Chakra Gold Farms and Villas (India) Ltd. They took original unregistered agreement papers worth of Rs 27 lakh, besides two automobiles, City Police Commissioner B Sivadhar Reddy informed the media.
He stated 3 individuals of Chilakaluripeta-Dasari Aruna, her spouse Dasari Narendra and her brother Nidamanuri Anil Kumar– started company called Sri Chakra Gold Farms and Villas (India) Ltd. Later Boddepalli Giribabu, Chapala Padmavathi, Dasari Ganesh, D Lova Raju and N V Suresh Kumar signed up with them as the directors. According to the registration, they had to do real estate business; but in the guise of realty business they collected deposits, going against the RBI standards, of Rs 15.18 crore from 32,000 consumers.
They developed branches in the State and at Bellary (Karnataka).
Sivadhar Reddy stated they ‘tempted’ public in the name of daily, month-to-month and set deposit schemes in a deceitful manner. The company did not have required land to sell it to the members, as declared; yet they distributed land possession certifications to some members, which did not belong to Sri Chakra Gold.
They likewise started Sthirasthi Chit Fund Pvt Ltd and Sri Chakra Shopping center and took bank loans of Rs 1.75 crore. The Sri Chakra Gold Company paid about Rs 5.26 crore to 8,000 depositors, while it still had to repay Rs 8 crore to nearly 24,000 members. The CP stated the 10 accused were taken into custody at Baachi Towers and sent out to remand. Business managing directors Dasari Narendra, Giridhar and Dasari Ganesh Kumar were yet to be apprehended.