Bhavita Sri Chits MD Held For Scam In Hanamkonda

WARANGAL: Police officials arrested Bhavita Sri Chits managing director (MD) Tatipalli Srinivas in Hanamkonda following a series of complaints from victims who were not repaid after their chit periods ended.

It may be recalled that the company’s chairman and former Warangal mayor, Gunda Prakash Rao, was arrested in September. With the arrest of the key leaders of the chit fund company, depositors are hopeful that they may finally get justice.

The company is accused of collecting monthly deposits from members, particularly through its branches in Narsampet, Hanamkonda and Warangal, but failing to return the funds after maturity. When payments were refused, the branch offices were abruptly shut down. Victims who went to the main office in Hanamkonda to demand their money back were allegedly met with abuse and aggression from the management.

MD Tatipalli Srinivas had been absconding since September, when chairman Gunda Prakash Rao was first arrested by Warangal Police following widespread complaints across the erstwhile Warangal district.

Bhavita Sri Chits expanded rapidly across Telangana, including opening multiple branches in Hyderabad. However, as pressure mounted from depositors, the company reportedly began closing its branches one after another. Allegations suggest that the management diverted subscribers’ money into real estate ventures and other businesses, violating chit fund regulations that require returns to be paid to members.

The company is also accused of purchasing low-cost land and selling it to members as gated community plots at exorbitant prices. Additionally, it is believed to have illegally accepted fixed deposits, in violation of Reserve Bank of India norms.

Meanwhile, victims have urged police to seize all assets purchased by the company’s representatives and their associates to ensure recovery of their money.