Man arrested after defrauding chit fund investors

BENGALURU: A man who defrauded people by collecting money for chit fund schemes has been arrested by the Begur police.

The fraudster allegedly collected Rs 1.5 crore from 40 people for chit funds and then went absconding from home overnight, leaving the investors in the lurch.

A woman alleged that she was paying every month to two chit funds — Rs 6,000 for a Rs 1.50 lakh chit fund and Rs 15,000 for a Rs 3.75 lakh chit fund for two years. “He was delaying paying back investors, excusing some reasons. He made us believe that he is ready to sell the home to return their money. One day, he was seen sick and injured, and his wife and brother-in-law took him to their house, saying that he needed some rest and he would return after. But he never came back and cheated them all”, she said.

A case was registered at the Begur police station and the accused was arrested.