In a significant financial fraud case, the Central Crime Station (CCS) in Hyderabad has registered a cheating case against a chit fund operator for allegedly duping more than twenty individuals of a staggering sum exceeding ₹1.6 crore. The case, filed on December 15, targets Hatty Chandrakanth, a resident of Lingampally, and his associates.
The Modus Operandi of the Alleged Scam
The complaint that set the investigation in motion was filed by a 32-year-old private employee, Sainath Jajapuram from Aghapura. According to his statement to the police, he first met the accused, Hatty Chandrakanth, in August 2020. Chandrakanth reportedly offered Sainath a monthly salary of ₹12,000 with a specific task: to recruit subscribers for a series of chit funds operating under the name 'Om Sai Ram'.
Trusting this proposal, Sainath proceeded to bring 22 of his acquaintances into the fold. He enrolled them in five different chit fund schemes that were launched between the years 2022 and 2024. The values of these schemes were substantial, set at ₹5 lakh, ₹10 lakh, and ₹25 lakh. Sainath's role involved collecting the regular instalments from these members and forwarding the money to accounts specified by Chandrakanth.
How the Money Was Transferred and the Eventual Breakdown
The financial trail, as outlined in the complaint, shows that Sainath transferred a total of ₹83.87 lakh from his own State Bank of India and HDFC Bank accounts. These funds were sent to nine different bank accounts provided by the accused. The police note that additional cash payments were also made directly, further complicating the money trail.
The entire scheme began to unravel in March 2025. The first major red flag appeared when Chandrakanth suddenly stopped answering phone calls. Simultaneously, he failed to release the promised payout amounts upon the maturity of the chit fund schemes. Sainath also revealed that the accused owed him four months of his promised salary, adding personal financial injury to the broader fraud.
Police Investigation and Legal Charges Invoked
Following his own troubling experience, Sainath and other affected individuals began making inquiries. Their investigation uncovered an even larger web of deception. It was alleged that Chandrakanth had also persuaded some of his own relatives to invest in the schemes, extracting an additional ₹82 lakh from them under the false promise of hefty financial returns.
Based on Sainath Jajapuram's formal complaint, the CCS police have registered a comprehensive case. The charges are severe and drawn from multiple legal statutes:
- Section 316(2) of the Bharatiya Nyaya Sanhita (BNS) for punishment related to criminal breach of trust.
- Section 318(4) of the BNS for cheating and dishonestly inducing delivery of property.
- Section 5 of the Telangana Protection of Depositors of Financial Establishments Act.
- Section 76 of the Chit Funds Act.
The case has been registered against Hatty Chandrakanth and other unnamed individuals involved in the operation.
Official Statement and Ongoing Probe
A CCS investigator, speaking on the ongoing probe, provided crucial insights. "Preliminary evidence points to criminal breach of trust and cheating," the official stated. The investigator further revealed a key suspicion: "We suspect that the schemes were run without any licences." The focus of the current investigation is to meticulously trace the flow of money. "We are collecting details of the money transfers from the victims," the investigator added, highlighting the procedural steps being taken to build a solid case.
This incident serves as a stark reminder for the public to exercise extreme caution and conduct thorough due diligence before investing in any financial scheme, especially those offering unusually high returns.
