AP’s Border Town Palamaner Turns a Fertile Ground for Financial Frauds

Tirupati: Palamaner, a border town less than 20 km from Tamil Nadu and Karnataka, has emerged as a hotspot for financial frauds, with locals losing crores of rupees in recent years. The town’s strategic location and the ease with which offenders can move across state borders have made it vulnerable to a range of scams.

The latest fraud surfaced last week when traders received calls from scammers posing as municipal officials. They demanded payment of pending trade licence fees through UPI. The callers sent QR codes and used a number that displayed the municipal commissioner's name on caller identification apps, convincing some of them to make payments before the fraud got exposed.

QR code scam is only the latest in a series of financial frauds reported from the border town. Unregulated chit funds and private lending schemes have become a recurring source of financial distress in Palamaner and nearby villages.

One of the biggest controversies involved a local financier who allegedly mobilised money through private borrowings and chit funds before filing for insolvency, citing losses in business. His liabilities reportedly exceeded ₹13 crore, affecting more than 200 investors.

Sources said more than 10 individuals have borrowed large sums from residents of the town. They declared insolvency during the past year, leaving creditors with little hope of recovery. Victims have approached elected representatives and police. But many of them say they have not recovered their investments. "We approached the police several times, but most of us have not received a single rupee. Many families invested their life’s savings believing the promises made by the fraudsters," said K. Rajendra, a victim.

Another fraud case surfaced about one-and-a-half years ago when an outsourcing employee associated with the municipality allegedly persuaded hundreds to invest in a chain-link marketing scheme through an application called "DAAI". He promised high returns for enrolling new participants. The investors instead suffered losses estimated at around ₹6 crore. Though police registered a case, victims say they are still awaiting justice.

Further, residents point to "gifting schemes" allegedly operated by organisers from neighbouring Tamil Nadu. Participants are promised gifts or high returns in exchange for enrolling new members and making advance payments. Locals say organisers frequently visit Palamaner and surrounding villages to recruit investors but disappear after collecting money. Tracking them becomes difficult as many operate from remote border villages, where jurisdictional and logistical challenges hinder police action.

"Fraudsters are increasingly using digital payment platforms, fake caller IDs, and interstate networks to target the public. People should verify any payment demand with the concerned department before transferring money. We are coordinating with other agencies in cases involving interstate suspects," a senior police official said.

New sub-registrar office opens at Tiruchanoor

State revenue, registration and stamps minister and district in-charge minister Anagani Satya Prasad on Wednesday inaugurated a new Sub-Registrar Office at Tiruchanoor, fulfilling a long-pending demand for improved registration services in the Tirupati region.

The office has been created by bifurcating the existing Renigunta Sub-Registrar Office to improve accessibility and speed up registration transactions.

The facility was inaugurated in the presence of registration and stamps commissioner and inspector general Dr B.R. Ambedkar, district collector Dr S. Venkateswar, MP D. Prasada Rao, Chandragiri MLA Pulivarthi Nani and TUDA chairman C. Divakar Reddy.

Addressing the gathering, Satya Prasad said the government was establishing new registration offices in areas witnessing growing economic activity and increased transaction volumes as part of its Ease of Doing Business initiative.

He said the former Secretariat building at Tiruchanoor had been renovated and converted into a temporary Sub-Registrar Office. Plans were under way to construct a permanent building with modern facilities, he added.

The minister said the government also intends to construct permanent buildings for registration offices currently functioning from rented premises across the state within the next two to three years.

Referring to the Land Re-Survey 2.0 programme, he said the exercise was being conducted transparently by providing complete information to landowners and obtaining consent through e-KYC verification and other monitoring mechanisms.

He said the government was working to resolve nearly 7.5 lakh grievances and applications received through gram sabhas and revenue conferences. Efforts were also under way to address land disputes, issues relating to 22-A lands and pending court cases through legal procedures.

Later, the minister laid the foundation stone for a permanent drinking water pipeline from Taj Circle to the Srinivasapuram water tank. He also inaugurated a CC road and drainage system constructed between Market Yard and Taj Circle within Srinivasapuram gram panchayat limits.

Tirupati RDO Ram Mohan, District Registrar Ram Kumar, public representatives, officials and local residents attended the programme.

Big-ticket investments approved for Chittoor, Tirupati

The state Cabinet has approved a series of industrial projects in Chittoor and Tirupati districts, paving the way for fresh investments in furniture manufacturing, food processing, poultry processing, renewable energy and hospitality sectors.

The projects are expected to boost industrial activity, attract investments and generate employment across the region.

In Tirupati district, the Cabinet approved revised incentives for the ₹2,508-crore Royal Enfield manufacturing facility at Satyavedu. It also cleared incentives for Premier Energies, which is expanding its solar manufacturing capacity from 5 GW to 10 GW with an investment of ₹5,974.20 crore. The company will receive ₹1.95 crore towards the construction of employee accommodation facilities.

The Cabinet also approved incentives for the proposed Daivik Hotel project in Tirupati and agreed to bear the cost of shifting pipelines, electric poles and other utilities connected to land allotted for the proposed Oberoi Hotel project.

In addition, incentives were sanctioned for Amber Enterprises, which plans to invest ₹445 crore in its facility at Sri City.

In Chittoor district, Nutrifeed and Farms Pvt. Ltd. received approval for a special subsidy package to establish an integrated poultry processing centre with an investment of ₹216 crore. The project is expected to generate direct employment for 480 people.

The Cabinet also cleared the transfer of 1.57 acres of industrial land in the GD Nellore Industrial Area for a food processing unit proposed by CP Norfolk India Private Limited. The `12.96-crore project is expected to create 49 jobs.

In Kuppam constituency, 106 acres were allotted to Avaron Panels for establishing an integrated medium-density fibreboard and furniture manufacturing unit in Gudupalle and Santhipuram mandals.

The Cabinet further approved the reclassification of 529.34 acres in Kangundi Reserve Forest revenue village of Kuppam mandal from "Forest Poramboke" to "Assessed Waste Dry" after it was determined that the land did not qualify as forest land. Eligible poor families cultivating the land will be granted DKT pattas.