Three Arrested In Multi-Crore Animation Projects' Fraud Case

VIJAYAWADA: Vijayawada police have busted a major fraud involving a company UPIX Creations by arresting three individuals.

City police commissioner S.V. Rajasekhar Babu said the accused lured investors with promises of high returns from investing in Hollywood animation projects, only to divert the funds for personal gain.

Addressing media on Saturday, the police commissioner said they apprehended the prime accused in Vijayawada and other two from Narasaraopet. The arrested are Nidumolu Venkata Satya Lakshmi Kiran (33), resident of Satyanarayanapuram, Vijayawada; Mittapalli Rajendra Babu alias Raju (63); and Mittapalli Rajeev Krishna (30), both residents of Krishnanagar in Guntur district.

During their raids, police seized ₹90 lakh worth gold ornaments, 21 kg of silver ornaments, an XUV car, a BMW bike and computers, apart from incriminating documents. Bank accounts of the accused have been frozen and assets worth nearly ₹23 crore attached.

Providing details, Rajasekhar Babu said on April 14, complainants Tripuramallu Srinivasa Rao and Kalavakollu Dilip Kumar from Narasaraopet approached the Satyanarayanapuram police station, alleging that UPIX Creations lured them and others with promises of high profits, eventually cheating them of nearly ₹20 crore.

Following the complaint, police registered two cases. Commissioner Rajasekhar Babu constituted a special task force led by DCP K Tirumaleswara Reddy and North ACP Dr. Sravanthi Roy, supported by four inspectors and additional staff.

Investigations revealed that Kiran established UPIX Creations in 2014 at Adi Seshayya Street, Satyanarayanapuram, employing nearly 70 staff. By 2018, Kiran, in collusion with associates and members of the Mittapalli family, floated fraudulent deposit schemes. They lured investors with schemes such as ₹10 lakh and ₹1 crore deposits for 12 months, promising abnormally high returns. To gain confidence, they showcased fabricated profits to early investors, drawing in more deposits.

Further police inquiries uncovered that the fraudsters cheated about 183 victims from Narasaraopet, Guntur and Vijayawada. By the end of 2024, they diverted nearly ₹194 crore of the amount collected into their personal accounts and acquired properties in their or their family members’ names.

The city police commissioner felicitated members of the investigation team and presented cash incentives in recognition of their commendable work.