Malkajgiri special operations team along with Kushaiguda police on Friday arrested two persons for organising prize chits scheme. Silver biscuits, about 100 television sets, ₹2.2 lakh cash and other material was recovered from them.
According to the police, the accused Shaik Salauddin of Kushaiguda and Shahab Mir Khan of Jalpally came up with a lucky draw scheme, in which all the registered members had to contribute ₹1000 for 16 months. In addition to monthly draws, there would be a grand lucky draw at the end of the scheme period.
The organisers told the participants that their ‘Nise enterprises’ was government-registered. The total members were 3,000 and the instalments are to be strictly paid before 5th of every month to be eligible for the draw. Two such schemes, launched in November and January, were in circulation.
Accused Salauddin and Khan also recruited 35 agents to further the scheme and collect monthly instalments. While they had planned to collect a total of about ₹4. 80 crore through the scheme, a portion of the collected funds was used to buy gifts such as TVs, silver coins, jewellery and mobile phones.
The accused were booked for cheating and under provisions of the Prize Chits and Money Circulation Schemes (Banning) Act. Police are searching for the absconding agents.
The accused were booked for cheating and under provisions of the Prize Chits and Money Circulation Schemes (Banning) Act. Police are searching for the absconding agents.
