Chit fund owner kills self after being dragged to CCB

Chit fund owner kills himself after investors drag him to CCB

The finance business did well until 2018 when he started making losses

Representative Image. Credit: iStock Photo

A chit fund owner probed by the Central Crime Branch (CCB) for defaulting on payments to investors allegedly killed himself on Friday. 

Rajanna, 49, was found hanging in his office in Kumaraswamy Layout, South Bengaluru, around 10 am. A three-page purported death note was also recovered from the spot. 

Rajanna, a Tumakuru native who had settled down in Thalaghattapura, had been running an iron fabrication business in Yelachenahalli Industrial Area. He was also into the finance business and ran a private chit fund. 

The finance business did well until 2018 when he started making losses. Last year’s lockdown proved to be the final straw. Many members of the chit fund who had already received the payment failed to continue their monthly instalments. Those due to receive the payment started asking Rajanna about the money, putting him in a tight spot. With the cash flow squeezed, Rajanna struggled to honour the financial commitments. 

Things reached a head four days ago when three members of the chit fund petitioned the CCB for help to get their money back. CCB officials summoned Rajanna for questioning. A preliminary investigation showed that neither party had documents to show their mutual financial transactions. The chit fund didn’t have the necessary government approvals either. The CCB officials asked both Rajanna and the three men to sort out the matter among themselves. 

On Thursday evening, the trio caught hold of Rajanna on a public road near Thalaghattapura, and abused and beat him before a crowd of hundreds. Rajanna felt humiliated. The same night, he confided in his wife and appeared highly disturbed. She counselled him and suggested selling the house and paying off the chit fund members. But the next morning, he went to work and allegedly killed himself. 

Police said Rajanna’s death note named the three men who dragged him to the CCB. Based on his wife’s complaint, police have taken up a case of abetment to suicide against the trio but have not made any arrests as yet.