Telangana Police and Haryana STF together arrested five people for having swindled thousands of people in a chit fund scam that they have pegged at Rs 2,000 crore.
Hisar resident Naresh Sharma alias Radhey Shayam and four other people were arrested in a joint operation and taken to Telangana. Police claim Sharma, chief managing director of Hisar-based FMLC Private Limited, is believed to be the scam’s mastermind. Although the entire extent of the scam is still under investigation, the firm is believed to have convinced several unsuspecting people into investing in its scheme with the promise of doubling their money. The scam was operational primarily in Telangana.
Victims were initially given profits to gain their trust, and then, as investments went up, scammers shut down their offices, police said.
“Telangana Police contacted us on Thursday to inform us about an FIR registered against the Hisar resident for violation of Price Chit and Circulation Scheme Act. Radhey Shaym is CMD of a firm that was primarily active in Telangana. The police arrested him and four others,” Deputy Inspector General (STF) Satheesh Balan said.
Police sources said Telangana Police also submitted a list of other Hisar residents they suspect are part of the fraud.
There are no reports of people being defrauded in Haryana so far.
