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Hyderabad: Ex-constable held in money racket'

The investment for the second package was Rs 30,000 and Rs 70,000 for the third.

Hyderabad: Two persons, including a constable who deserted his job, were nabbed by the city police for illegally running a ‘money circulation scheme’ under the garb of ‘E Cash Trade Securities’. Police on Saturday seized Rs 6 lakh cash and 30 gm of gold and froze four bank accounts with a total Rs 1.73 crore.

Acting on a tip off, the Commissioner’s Task Force (West) team caught J. Shyam Sundar, 48, director of the firm, and P. Vaasu Deva Naidu, 26, its managing director.

Hyderabad commissioner (incharge) V. Srinivasa Rao said the duo had started the firm on January 1 and lured people with various multi-level marketing schemes. In two months, they collected about Rs 4.52 crore after enrolling 400 members in four different schemes.

In the first, the investor had to put in Rs 10,000 and get daily returns of Rs 200. The investment for the second package was Rs 30,000 and Rs 70,000 for the third.

The firm also had a special scheme with a daily return of Rs 3,000 and a 100-sq yard plot. “The gang purchased five plots at Kolanpuka village in Aler mandal of Yadadri district,” said the Commissioner. The scheme functioned in a pyramid form.

“A new member would become the head of a team and introduce or make several others join it. The team head gets a commission for every new entrant as well as return of investment made. Each individual can open up to 32 accounts,” the official said.

Previously, the duo cheated people in a similar manner and had operated firms ‘Ocean Blue’ at Chaitanyapuri and ‘Multi Max at Benz Circle in Vijayawada. The victims did not make police complaints and got duped.

( Source : Deccan Chronicle. )
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