<p>Owing to the controversy surrounding a fraudulent chit fund scam, 17 people from the city were arrested, while cases were booked against two other individuals by Adugodi police in Bangalore on Friday. All the individuals will be released on bail today in Bangalore.<br /><br /></p>.<p>Arrested persons are said to have visited Bangalore, to recover the money invested by them in a chit fund being managed by Manjunath, the person who was allegedly running a fraudulent chit fund scam, amounting to Rs two to three crore.<br /><br />The arrests were made based on a complaint lodged by Lakshmi, wife of Manjunath. All the persons have been booked under IPC sections 143, 147, 365, 327 and 506 for wrongful confinement, unlawful assembly, causing hurt and criminal intimidation among other charges.<br /><br />The Chit Fund<br /><br />Sources said that Manjunath has been operating chit funds in Vijayanagar police station limits in the city for the past few years.<br /><br />“Earlier, he started operating Rs 50,000 to Rs 1,00,000 worth chit funds. He started developing contacts by claiming to be a relative of influential politicians. He used to organise local programmes and add individuals for his chit fund,” sources said.<br /><br />Manjunath, sources added, was careful enough not to have any persons who has been living in the city participate in the chit fund and concentrated on attracting individuals from Rajasthan and other states, making a living here.<br /><br />In his recent chit fund, each person was to invest a total of Rs five lakh, with a certain amount to be deposited. Persons who had invested in the chit fund, grew suspicious, as Manjunath fled to Bangalore while the chit fund was in progress in Mysore.<br /><br />Spooked by the disappearance of Manjunath, members of the chit fund tried lodging a complaint at Vijayanagar police station. Since the issue was a civil dispute, police officials are known to have advised these members to approach the court, as there were no legal documents to verify the chit fund.<br /><br />The members meanwhile, were successful in contacting Manjunath in Bangalore. Owing to demands, Manjunath reportedly consented to pay them the money back.<br /><br />However, while the 19 members visited Manjunath’s apartment in Adugodi, an altercation occurred between them. Lakshmi then called Adugodi police, who arrested 17 persons, while two persons left the apartment before the police arrived.<br /><br />Sources said that the investors will now probe legal alternatives to recover their money lost in the chit fund.<br /></p>
<p>Owing to the controversy surrounding a fraudulent chit fund scam, 17 people from the city were arrested, while cases were booked against two other individuals by Adugodi police in Bangalore on Friday. All the individuals will be released on bail today in Bangalore.<br /><br /></p>.<p>Arrested persons are said to have visited Bangalore, to recover the money invested by them in a chit fund being managed by Manjunath, the person who was allegedly running a fraudulent chit fund scam, amounting to Rs two to three crore.<br /><br />The arrests were made based on a complaint lodged by Lakshmi, wife of Manjunath. All the persons have been booked under IPC sections 143, 147, 365, 327 and 506 for wrongful confinement, unlawful assembly, causing hurt and criminal intimidation among other charges.<br /><br />The Chit Fund<br /><br />Sources said that Manjunath has been operating chit funds in Vijayanagar police station limits in the city for the past few years.<br /><br />“Earlier, he started operating Rs 50,000 to Rs 1,00,000 worth chit funds. He started developing contacts by claiming to be a relative of influential politicians. He used to organise local programmes and add individuals for his chit fund,” sources said.<br /><br />Manjunath, sources added, was careful enough not to have any persons who has been living in the city participate in the chit fund and concentrated on attracting individuals from Rajasthan and other states, making a living here.<br /><br />In his recent chit fund, each person was to invest a total of Rs five lakh, with a certain amount to be deposited. Persons who had invested in the chit fund, grew suspicious, as Manjunath fled to Bangalore while the chit fund was in progress in Mysore.<br /><br />Spooked by the disappearance of Manjunath, members of the chit fund tried lodging a complaint at Vijayanagar police station. Since the issue was a civil dispute, police officials are known to have advised these members to approach the court, as there were no legal documents to verify the chit fund.<br /><br />The members meanwhile, were successful in contacting Manjunath in Bangalore. Owing to demands, Manjunath reportedly consented to pay them the money back.<br /><br />However, while the 19 members visited Manjunath’s apartment in Adugodi, an altercation occurred between them. Lakshmi then called Adugodi police, who arrested 17 persons, while two persons left the apartment before the police arrived.<br /><br />Sources said that the investors will now probe legal alternatives to recover their money lost in the chit fund.<br /></p>
