Chit owner held for Rs 60 lakh fraud

HYDERABAD: Chatrinaka police on Sunday arrested a chit fund firm organiser for duping 50 members of Rs 60 lakh. According to police, one Bal Reddy of Uppuguda, collected Rs 60 lakh from 50 members  but failed to repay the amount to the members. Police said  Bal Reddy has been organising chit fund firm illegally without any licence. A few weeks ago, he ran away from his house with members bringing pressure on him to pay the amount.Police said the accused confessed to the police that he  gave the Rs 60 lakh as loan at higher interest rates to various people and they failed to return the loan amount to him.Some of the members of his chit fund group lodged a complaint with the Chatrinaka police against Bal Reddy. Based on the complaint, police arrested him on Sunday.