The Economic Offences Wing of the Cyberabad police in Hyderabad on Friday arrested a government school teacher, the alleged kingpin of a ₹150 crore ponzi scheme.
Cyberabad police commissioner V C Sajjanar said the police had arrested Methuku Ravinder, chief executive officer of Sun Pariwar Group of companies, and frozen ₹14 crore deposited by his company in various banks.
Ravinder had been working as a government school teacher at Upper Primary School in Revalli village of Siddipet district. Unsatisfied with his meagre income, he applied for long leave from his job and floated his own company Sun Pariwar Group at Sangareddy in 2015.
“Since he was still a government employee, he started as many as eight different business outfits such as Sun Mutually Aided Thrift and Credit Cooperative Society Ltd, Methuku Chit Funds, Methuku Ventures etc. under the umbrella of Sun Pariwar Group, in the name of his close associates and relatives,” the commissioner said.
Ravinder used to attract customers with a slogan of ‘Kalisthe Gelustham (together we win)’ and collected huge amounts to the extent of ₹150 crore from gullible investors. His modus operandi was to collect ₹one lakh in the form of deposit in the company, for which the depositor would be returned ₹6,000 per month as interest for a period of 25 months. In the 26th month, the depositor would be returned the principal amount of ₹1 lakh.
“Ravinder also offered attractive incentives to the agents who would mobilise deposits — a commission of 3% for a period of nine months if the deposit is ₹5 lakh and 4% commission, if the deposit is more than ₹5 lakh. Even if a member admits another member, he, too, would get a commission of 3%. He also used to take agents on holiday trips to Goa, Shimla, Bangkok and Dubai if they achieved their targets,” Sajjannar said.
{{/usCountry}}“Ravinder also offered attractive incentives to the agents who would mobilise deposits — a commission of 3% for a period of nine months if the deposit is ₹5 lakh and 4% commission, if the deposit is more than ₹5 lakh. Even if a member admits another member, he, too, would get a commission of 3%. He also used to take agents on holiday trips to Goa, Shimla, Bangkok and Dubai if they achieved their targets,” Sajjannar said.
{{/usCountry}}Thus, Ravinder collected huge amount of deposits running up to ₹150 crore from gullible people who were attracted by high interest rates and commissions. Subsequently, he started avoiding payments of interests and principals to the depositors.
Following a complaint from a depositor, D Durgadas, the Shamirpet police of Cyberabad registered a case which was later transferred to the Economic Offences Wing. After a thorough investigation, the police cracked the case and arrested the accused.
“A cheating case was registered against Ravinder under section 420 of the IPC besides Section 5 of Andhra Pradesh Protection of Depositors of Financial Establishments Act, 1999. The other directors of the company are absconding,” the police commissioner said.