Bengaluru chit fund scam: Fraudster arrested after cheating over 40 people of crores

A major financial fraud has rocked Bengaluru’s residential pockets, where an alleged chit fund operator has been arrested for cheating more than 40 unsuspecting residents out of their life savings. The accused, Panduranga from Srinivasa Layout, Devarachikkanahalli, had been posing as a trustworthy chit fund agent for almost 20 years, skillfully winning people’s confidence before disappearing with over Rs 1.5 crore.

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Local residents say Panduranga cleverly built a reputation for being prompt with payouts and maintaining smooth transactions for years. This long-term trust made it easy for him to collect increasingly bigger sums, especially from families who pooled their savings hoping for better returns than banks could offer.

However, when the time came for a major payout, Panduranga packed up overnight, vacating his house without informing anyone. To make matters worse, it came to light that the house he was staying in was not even his own, he had leased it but took a huge loan against it without repaying the bank.

When the bank stepped in to recover its dues, they found tenants living in the house, unaware of the pending loan or legal mess. Police and bank officials had to evict the tenants after sealing the property, leaving many homeless and shocked at how deep the scam ran.

With dozens of complaints pouring in, the Begur Police swung into action, tracking Panduranga’s movements to Tamil Nadu, where he was hiding to escape arrest. He was finally nabbed and brought back to Bengaluru to face charges.