Vizag: Victims protest firm accused of Rs 20 crore investment scam

Around 350 victims protested in Visakhapatnam, alleging the 'Chandu Group' duped them of nearly Rs 20 crore through fraudulent investment schemes. Protesters demand immediate police action, citing a lack of progress in the investigation.

Chaos erupted outside the Visakhapatnam Police Commissionerate on Monday as approximately 350 victims gathered to protest against the "Chandu Group," a firm they allege has swindled them out of nearly Rs 20 crore through fraudulent investment schemes. Despite having lodged a formal complaint at the 4th Town Police Station, the victims expressed deep frustration over the lack of progress and demanded immediate legal action.

How the Scheme Operated

According to the victims, the group, operated by one Nadigatla Mohan Rao--locally known as "Chandu"--attracted hundreds of investors by promising returns far exceeding those offered by traditional banks. The firm allegedly maintained offices in the Shankaramattam Road area, operating out of the Axis Bank building, and projected an image of stability by paying out interest consistently for the first two to three years.

"We are people from three districts, about 350 of us," said Devraj, one of the protesters. "Chandu offered 20 to 25 different schemes. He offered more than bank interest, and because he paid out for two to three years, people gained good confidence in him. From January through March, people invested heavily--amounts ranging from Rs 5 lakh to Rs 5 crore--hoping for the high returns he promised."

The 'Investment Trading' Lure

For many, the lure was the promise of "investment trading." SP Chakravarthy, a retired employee from BHPV Limited, shared how he was drawn into the scheme. "I approached the Chandu Group office after hearing they were paying good interest. Nadigatla Mohan Rao explained many schemes, but I was interested in his 'investment trading.' He told us that if we invested in their organization, they would put it into trading and pay a Return on Investment (ROI) of 1%," Chakravarthy stated.

Demands for Police Action

The victims claim that since the investment amounts spiked earlier this year, the firm has failed to meet its repayment obligations, leaving many in financial ruin. As the protest intensified, representatives of the victims urged the police to expedite the probe and freeze the assets of the group to ensure the recovery of their life savings. (ANI)

(Except for the headline, this story has not been edited by Asianet Newsable English staff and is published from a syndicated feed.)