Vijayawada: In a worrying trend, an increasing number of people, especially women, are falling prey to fake promises by finance and chit fund companies.
Perhaps it is due to lack of financial education or perhaps just greed, people, most of whom are from the weaker sections tend to invest in fake companies, without even checking their credentials.
Umamaheswari, the promoter of Umamaheswari Pvt Ltd, in which over 1,000 women invested their hard-earned money, was able to dupe her investors by promising them astounding returns on their investments. Umamaheswari promised to return Rs 1 lakh on every investment of Rs 5,000. She claimed that such high returns were possible since she wanted to avoid paying taxes.
The investors still fell into her trap despite repeated warnings by the police not to believe such scamsters and invest in unauthorised companies.
MLA B. Umamaheswara Rao asked people not to believe anyone who promises huge profits on small investments.
