Andhra Pradesh Crime Investigation Department (CID) filed first charge sheet in the multi-crore Chit fund scam involving Bommarillu Farms and Villas India Ltd after three years of investigation.
The press release stated that Bommarillu amassed Rs 95.11 crore from 1.46 lakh depositors in Andhra Pradesh, Telangana and Odisha which were invested in in real estate and other ventures. The accused had returned Rs 47.44 crore to depositors but siphoned off Rs 47.67 crore. The firm collected huge deposits from investors violating RBI norms by commissioning more than 3000 agents.
The charge sheet named ten persons who were previously remanded or arrested. The Bommarillu Farms & Villas Pvt. Ltd. and its sister concerns – The Raja Homes Pvt. Ltd., Bommarillu Foods & Consumer Products Pvt. Ltd., Bommarillu Cinemas Pvt. Ltd., Bommarillu Constructions Pvt. Ltd., were established by Rayala Raja Rao, Rayala Swathi Raja & others.
Cases were booked under IPC Sections 420, 403, 406 and 120 (B) and AP Protection of Depositors and Finance Establishment Act-1999 Section 5 and Prize Chits and Money Circulation Schemes (Banning) Act 1978 Sections 4,5 and 6.
