Bengaluru shocker: How man’s failed chit-fund investments ended in chilling double murder plot

The accused, Ravi Prasad Reddy, had previously owned a chain of grocery stores but faced severe losses during the Covid-19 pandemic.

A 40-year-old man from Hebbagodi, Bengaluru, has been arrested for allegedly murdering two of his close friends over financial disputes. The accused, Ravi Prasad Reddy, had previously owned a chain of grocery stores but faced severe losses during the Covid-19 pandemic.

Police investigations revealed that Reddy suffered losses of around ₹5 crore after defaults by borrowers and investments in chit funds failed. (HT_PRINT)

Police investigations revealed that Reddy suffered losses of around ₹5 crore after defaults by borrowers and investments in chit funds failed.

About 60 people he had lent money to either died or left the city during the pandemic, leaving him in deep financial trouble, as per a report by The Times of India (TOI).

Reddy allegedly killed tea shop owner R. Madesh (41) and metal fabrication factory owner Balappa Reddy (61) to demand ransom. The police arrested him from a bar near his home on Saturday afternoon, the report further stated.

During a spot investigation at a burial ground in Bommasandra later that night, Reddy reportedly tried to attack police personnel and was shot in both knees. Two of his associates, Dhanush and Sateesh, who accompanied him during Balappa’s abduction on 6 November, were also taken in for questioning. Reddy’s elder sister, Sunanda, is being investigated as she was allegedly present during the abduction.

Reddy, originally from Srisailam in Andhra Pradesh, set up his chain of Happy Family Stores with his uncle’s support. He lent money to others and invested heavily in chit funds. However, the pandemic caused defaults by debtors, forcing him to sell his house and a plot of land near Hebbagodi for ₹2 crore and lease out his stores to relatives.

His wife and two children moved in with his uncle, while Reddy rented a small house from one of the victims, Balappa, and started a vegetable stall with the help of Dhanush and Sateesh.

Police said that Reddy, inspired by crime films, planned to kidnap his victims and demand ransom. He purchased an air pistol, knives, and a metal detector, claiming he wanted to find hidden treasures. Investigators said he hatched the plan over three months.

Reddy first targeted Madesh on 4 November. Knowing that Madesh had ₹10 lakh in cash at his under-construction house, he threatened him at knifepoint. Madesh resisted and shouted for help, forcing Reddy to flee. Two days later, Reddy abducted Balappa under the pretext of a business discussion. When Balappa refused to pay money, Reddy attacked him with a knife, then moved the body to his residence before transporting it in an autorickshaw and dumping it in a forest near Hosur highway.

Police are continuing investigations into the full extent of Reddy’s financial dealings and any possible motives behind the murders.