📷 Image: Wikimedia Commons / Saiphani02
Crime
Victims of Rs 42‑crore Chit Fund Scam Seek Refund from Andhra Pradesh High Court
✍️ The New Indian Express
🗓 10 Oct 2026, 05:47 PM
👁 16
A group of investors who lost money in a Rs 42‑crore chit fund scheme have approached the Andhra Pradesh High Court, demanding the return of their investments.
The Andhra Pradesh High Court received a petition filed by a collective of investors alleging that they were duped by a chit fund operation that amassed approximately Rs 42 crore. The petitioners seek a court‑ordered refund of the amounts they had invested, contending that the scheme was a fraudulent enterprise that collapsed without returning any contributions.
The chit fund in question reportedly attracted participants from various districts across the state, promising high returns through a rotating savings model. Over time, the organizers allegedly siphoned off the collected funds, leaving the investors with substantial losses. The total claimed loss of Rs 42 crore reflects the combined deposits of dozens of individuals and small business owners.
Legal counsel for the victims argues that the fund violated provisions of the Chit Funds Act and other financial regulations, and therefore the court should intervene to order restitution. The High Court is expected to examine the evidence, summon the accused promoters, and decide whether to direct the recovery of assets or direct the State’s financial regulators to take action.
The case adds to a series of recent chit fund controversies in India, where authorities have been urged to tighten oversight to protect small savers from similar scams.
The chit fund in question reportedly attracted participants from various districts across the state, promising high returns through a rotating savings model. Over time, the organizers allegedly siphoned off the collected funds, leaving the investors with substantial losses. The total claimed loss of Rs 42 crore reflects the combined deposits of dozens of individuals and small business owners.
Legal counsel for the victims argues that the fund violated provisions of the Chit Funds Act and other financial regulations, and therefore the court should intervene to order restitution. The High Court is expected to examine the evidence, summon the accused promoters, and decide whether to direct the recovery of assets or direct the State’s financial regulators to take action.
The case adds to a series of recent chit fund controversies in India, where authorities have been urged to tighten oversight to protect small savers from similar scams.