Chain-Link Gift Scheme Scam Hits Madanapalle; Thousands Duped
A private entity named ‘Aara’ allegedly collected money from over 6,000 individuals in the town. Victims stated they were promised attractive daily returns in exchange for one-time payments of ₹2,000, ₹5,400, or ₹20,000: Police complaints
TIRUPATI: A large-scale financial scam resembling a chain-link fraud has surfaced in the Madanapalle region, leaving thousands of residents cheated under the pretext of a gift and returns scheme.
According to police complaints, a private entity named ‘Aara’ allegedly collected money from over 6,000 individuals in the town. Victims stated they were promised attractive daily returns in exchange for one-time payments of ₹2,000, ₹5,400, or ₹20,000. Organisers claimed the scheme would yield steady income and high-value gifts.
The prime accused, Mohan Babu of Madanapalle, reportedly promoted a programme called ‘Spin Gift’, promising rewards such as laptops, smartphones, two-wheelers, and even cars. Some early participants were said to have received gifts, but distribution was abruptly stopped, raising suspicion and triggering a wave of complaints.
As the scheme collapsed, hundreds of residents were left without the promised returns or gifts. Many victims approached the police seeking justice and action against the organisers. Several expressed anguish, saying they placed trust in the scheme and are now facing financial difficulties.
Preliminary inquiries suggest the scam has affected people not only in Madanapalle but also in other parts of Annamayya district. Police have launched an investigation and are working to identify the total number of victims and the amount collected.
Authorities have advised the public to remain cautious and to avoid investing in schemes not verified by credible financial institutions.
