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Sri Leathers Chit Fund Fraud | Report Scams

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activePonzi / Investment SchemeHyderabad / Nalgonda, Telangana

Sri Leathers Chit Fund Fraud

The Registrar of Chits of Telangana has initiated winding-up proceedings against four chit fund companies in the state after they defaulted on payments to subscribers. Among these are Sri Rishab Chits based in Hyderabad, Sri Uday Chit Funds Private Limited based in Nalgonda, Visista Chit Funds of Karimnagar, and Sai Venkateswara Chit Funds based in Nalgonda. Authorities have appointed liquidators and nominees to oversee settlement and winding-up processes.

State

Telangana

First reported

August 2023

Last activity

2025

Estimated victims

10,000+

Amount alleged

₹200+ Cr (alleged)

Agency involved

Central Crime Station, Mahankali police, One Town police, Registrar of Chits of Telangana

Arrests

Managing director and wife of Sri Rishab Chits; directors of Sri Uday Chit Fund

Charges or sections cited

Cheating, criminal breach of trust

Status

Winding-up proceedings initiated, liquidators and dispute settlement nominees appointed

The full story

Everything you need to know about this case, in one place.

According to reports, the Hyderabad Central Crime Station arrested the managing director and his wife associated with Sri Rishab Chits in December 2018 for cheating and criminal breach of trust. Investigators alleged that the company duped roughly 500 subscribers of about 60 crore rupees by failing to return matured funds. Police stated that the directors diverted investor money into the casino business in Goa, where they suffered financial losses. Cases were registered at both the Central Crime Station and the Mahankali police station.

In the case of Sri Uday Chit Fund in Nalgonda, local police registered a case in 2016 following complaints that chit amounts were not paid due to internal disputes among the directors. A director stated that the firm owed roughly 29 lakh rupees across five chit groups and had mortgaged properties, including city plots, to secure liabilities. Meanwhile, the state has integrated thousands of chit groups into blockchain technology to better monitor operations and prevent overlapping mortgage scams.

Not yet reported: The articles do not mention the final total amount allegedly defrauded across all four companies combined or the final outcomes in court.

Where the case stands

The latest position in the reports we read.

The Registrar of Chits has initiated winding-up proceedings and appointed liquidators and dispute settlement nominees for the implicated chit fund companies.

Who was affected

Described in general terms; we do not name victims.

Approximately 500 chit subscribers of Sri Rishab Chits and customers of Sri Uday Chit Fund in Telangana who did not receive their money upon maturity.

Timeline

Key dates as reported, oldest first.

2009Sri Rishab Chit Fund was established in Old Bhoiguda, Secunderabad.

2016One Town police in Nalgonda registered a case against Sri Uday Chit Fund and arrested its directors.

December 2018The Central Crime Station arrested the managing director and his wife associated with Sri Rishab Chits for cheating and criminal breach of trust.

How the scam worked

The method described in the reports.

Chit fund companies collected money from subscribers through various chit groups.
Instead of returning matured funds to subscribers, the management of certain firms allegedly diverted collected money into external ventures such as Goa casinos.
Companies defaulted on payments when chits matured, prompting subscribers to approach the police.
Some firms allegedly engaged in fraudulent practices such as mortgaging the same property for multiple chit groups.

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Sources and further reading

Optional. The full story is above; these are the original reports it was prepared from.

timesofindia.indiatimes.comOriginal report Primary source / searchOpens via Google News

Prepared by Report Scams, with the help of AI, from the published reports listed above. Check those reports for the latest. Cases here describe allegations. An FIR, arrest or charge is not a finding of guilt. To report a mistake, or to ask for a correction or removal, write to our Grievance Officer. See also the Safe Posting policy.