Nalgonda: Nalgonda police cracked another financial fraud in which a 21-year-old-Intermediate drop out cheated the gullible of crores of rupees in PA Pally mandal, Nalgonda district, after collecting money from them offering high interest. The police arrested the teenager, Ramavath Madhu, and three other members in his gang, and seized valuable property documents from their possession.
The arrested included Ramavath Madhu, 21, belonging to Vaddimatla, Palthya Bharath Kumar, 32 of Vittunaik thanda, Nagara Babu, 31, belonging to Vasram thanda in Nalgonda district and Sabavath Ramesh, 36, Almaasguda in Rangareddy district.
Producing the arrested before the media in Nalgonda, SP Sharat Chandra Pawar informed that Ramavath Madhu, a college dropout, worked as an agent of Balaji Naik, who also duped people of crores of rupees. Later, he started his own finance business and collected crores of rupees from the people, promising 18 per cent interest. He gained their trust by moving in luxurious cars and showing ownership documents of some companies. He even opened an office in the name of Gokulananda Infrastructure India Private Company in Hyderabad. He also made the people believe that he owned a pub and two spa centres in Hyderabad, apart from a cement factory in Kurnool.
“We have received 10 complaints against Madhu till now and expected they would increase in number in the coming day. He collected nearly Rs 50 crore, like Balaji Naik, from the people,” police said.
The police are also verifying the authenticity of the property documents shown by Madhu. He spent nearly Rs 2.5 crore for setting up a pub and spa centres and invested Rs 60 lakh in intra trading of stock market. He also spent Rs 40 lakh on online IPL betting. However, he incurred losses in all businesses.
In fraudster Balaji Naik case, the police on Monday arrested another four agents. The arrested included Ramavath Ravinder, 29, Ramavath Jawaharlal, 53, Sattu Naresh, 35, and Kadari Ram Prasad, 26, and Ramavath Ganesh, 25. Over 13 people were arrested by the police in connection with the case so far.
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