3 days ago
Three arrested in Rs 353-crore investment scam in Vijayawada
Vijayawada: Police arrested three persons for their alleged role in a high-return investment scheme in Vijayawada. The action follows complaints lodged on April 14 by Narasaraopet residents Tripuramallu Srinivasa Rao and Kalavakollu Dilip Kumar, who said the operators induced investors with claims that their company UPIX Creations did animation work for Hollywood productions and was an internationally established firm, and promised huge returns on deposits.
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The victims are said to be have lost nearly Rs 353 crore in the alleged scam.
Vijayawada police commissioner SV Rajashekara Babu said a special team arrested the prime accused from Vijayawada and two other persons from Guntur district. Police also seized items valued at about Rs 90 lakh, including 354 grams of gold, 21 kg of silver, a highend car, a BMW bike, and several computers. The accused's bank accounts have been frozen, and properties worth roughly Rs 23 crore linked to them are being processed for attachment.
The arrested individuals were identified as Nidumolu Venkata Satya Lakshmi Kiran (33) from Satyanarayanapuram in Vijayawada, Mittapalli Rajendra Babu (63) and Mittapalli Rajeev Krishna (30), both from Krishna Nagar area in Guntur district.
Main accused Kiran set up UPIX in 2014 and employed about 70 people. By 2018, he had linked up with associates and started soliciting deposits by promising to double investments in 12 months.
Police said early 'returns' were showcased to attract more investors, who were brought in through relatives and friends, with commissions offered for mobilizing deposits. Funds were then diverted to personal accounts.
While initial complaints referenced losses of around Rs 20 crore, police say the scale of the alleged fraud is far bigger. Investigators have identified about 183 victims from Narasaraopet, Guntur and Vijayawada who collectively deposited about Rs 353 crore in cash with the company.
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By the end of 2024, about Rs 194 crore of these deposits had been diverted into personal accounts of the accused, police said.
The commissioner added that further investigation is underway to trace additional assets, verify the money trail, and identify any other persons who may have benefited from or facilitated the alleged scheme. Police have urged victims to approach Satyanarayanapuram police station with proof of their deposits to aid the probe under the Depositors Protection Act.
