Police Probe ‘IAS Academy’ Chain-Link Pyramid Scheme In Jagtial

KARIMNAGAR: A fraudulent chain-link scheme operating under the name of an ‘IAS Academy’ has come to light in Jagtial district, allegedly targeting degree students and unemployed youth in Gangadhara and Kondagattu regions.

Police said the organisation collected a membership fee of Rs 999, promising daily payments in return for social media promotion. Enrolled students were asked to post the firm’s promotional images on their WhatsApp status and write short essays about the academy, with an assurance of Rs 50 per day for 50 days credited to their bank accounts.

The scheme offered higher returns for larger payments. An investment of Rs 1,999 allegedly promised Rs 100 per day, while Rs 2,999 was projected to yield Rs 150 per day, amounting to Rs 7,500 in less than two months.

Though presented as a civil services coaching institute, the operation allegedly functioned as a pyramid scheme. Representatives of the firm reportedly claimed that the payments were meant for promotional work and not as profit returns.

The network is said to have spread among students in Gangadhara, Kodimial, Ramadugu, Boyinapalli and Malyala mandals, with several students having paid the membership fee.

Educationists and local authorities cautioned students and parents against schemes offering quick or assured returns, warning that such operations typically disburse small sums initially before ceasing payments after collecting larger amounts.

Jagtial Town inspector Karunakar told Deccan Chronicle that police are examining the organisation’s activities. Though no formal complaints have been received so far, a preliminary inquiry has been initiated. Police are verifying the nature of the chain-link system and questioning representatives of the academy.

He advised the public to report suspicious investment schemes and cautioned students against getting involved in unlawful financial activities.