Cyberabad police commissioner M Stephen Raveendra on Sunday handed over cheques to depositors of ‘Karakkaya scam’, that was registered in Kukatpally Housing Board Colony police limits in 2018, on Sunday.
Starting off as a scheme for self-employment of women, the fraud at the time of being reported to the police was to the tune of ₹3.75 crore and had a subscriber base of 423 members.
According to a complainant, the scheme was all about buying Karakkaya or Haritaki, a medicinal herb, at ₹1,000 per kilogram and returning it to the seller in powdered form to get ₹1, 300 for the same quantity. Whoever intended to buy 100 kg of Haritaki would get a franchise and an additional ₹50 incentive per kg. The complainant had deposited ₹40 lakh and entered into an agreement.
Six months later, the company owners defaulted on their customers and fled with the amount.
After the crime was registered, the case was taken up by Cyberabad’s economic offences wing. Ten people involved in the fraud were arrested and remanded in judicial custody. With the instructions of Metropolitan Sessions Judge, a public auction of the properties of the accused was conducted and about ₹73.53 lakh recovered.
After verification, 281 victims were identified, and on Sunday, Mr. Raveendra handed over the cheques to 12 of the victims. The remaining 269 depositors would receive their share on a pro-rata basis in their bank accounts.