In a major development, the South Division Deputy Commissioner of Police (DCP) has written to the City Police Commissioner recommending the transfer of a large-scale chit fund scam case — involving over ₹10 crore — to the Criminal Investigation Department (CID) for further probe.
The case, currently registered at the Puttenahalli police station, involves four main accused: Sudha, her husband Siddachari, Yashavanth, and Varshini — all residents of JP Nagar 6th Phase. The accused are absconding, and preliminary investigations suggest that they cheated hundreds of investors through fraudulent chit fund operations.
The complaint, filed by a victim named Pushpalatha, alleges that Sudha had been running chit fund schemes for nearly two decades along with her husband and children. Pushpalatha claims to have invested in two chits worth ₹5 lakh each, paying monthly installments of ₹25,000 for 20 months. When she asked to withdraw her chit amount, she was told to wait as it was her "first time" investing.
However, on June 3, Sudha and her family reportedly fled their residence overnight, leaving no trace. Pushpalatha has accused them of fleeing with over ₹10 lakh of her money and has demanded legal action.
As the news of the scam surfaced, more victims have come forward with complaints, and police are in the process of collecting documentary evidence from each complainant. Police sources confirm that the fraud may exceed ₹10 crore based on the mounting number of complaints.
Given the scale and complexity of the fraud, the DCP has formally requested the case to be handed over to the CID for a comprehensive investigation.