In a significant crackdown, the Visakhapatnam city police arrested Nadella Srinivasa Rao, a 52-year-old resident of Gajuwaka, for allegedly masterminding a fraudulent investment scheme that duped over 360 individuals across multiple states. The accused has been charged with defrauding investors of approximately ₹75 crore by promising high returns through unauthorized investment schemes.
According to the police, Rao posed as an online trader running a makeshift office in Vuda Colony. He lured victims by offering lucrative returns on various deposit plans, convincing them to invest their hard-earned money. One complainant, who initially invested ₹1.5 lakh in January 2023, received timely returns. Gaining confidence, the victim later transferred an additional ₹10 lakh from his wife’s bank account, hoping for continued profits. Unfortunately, the returns ceased, and the provided security in the form of a promissory note and cheque for ₹5 lakh proved worthless.
The police revealed that Rao also operated a WhatsApp group named “NSR Traders Deal Shiekhar,” through which he attracted hundreds of investors from states like Andhra Pradesh, Telangana, Tamil Nadu, Karnataka, Punjab, and others. One of his schemes promised a return of ₹10,000 on an investment of ₹1 lakh over just 30 days, drawing many victims into his trap.
Following the complaint, the Visakhapatnam police registered a case under the Banning of Unregulated Deposit Schemes (BUDS) Act of 2019 and IPC Section 420 (cheating). Rao has been taken into judicial remand, and the police are now focused on recovering the victims’ deposits.
The investigation is ongoing, with authorities urging more victims to come forward and file complaints. The case serves as a stark reminder for the public to be cautious and verify the legitimacy of investment schemes before parting with their money.
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