Chirala: Subscribers in shock as chit fund organiser files IP

Chirala: Narahari Harikrishna, who runs a chit fund business in Chinaganjam, filed an Insolvency Petition on March 24, thereby shocking all his subscribers.

According to sources, in the IP notice, Harikrishna confessed to the court that he was unable to pay the amount to the subscribers as he incurred losses in prawn business.

Kukkala Chandrasekhar Reddy, a retired head constable and resident of Munnamvaripalem, informed that they were members in the chit organised by Narahari Harikrishna of Chinaganjam for more than 10 years. 'Harikrishna used to pay chit amount once they win the auction. But for the last two years, since Covid pandemic, he stopped paying chit amount to the subscribers."

Chandrasekhar Reddysaid that after several failed attempts, they approached Minister Balineni Srinivasa Reddy seeking justice, who advised Inkollu CI P Subbarao to investigate the matter and do justice to the victims, by not registering a case as per the request of the subscribers.

Chandrasekhar Reddy said the CI asked them to wait until Assembly session was complete, but in the meantime, they received notices from the court not to pressurise Narahari Harikrishna, as he filed an IP in the court of the senior civil judge in Chirala.

D Sudhakar from Chinaganjam said that Harikrishna has been organising chits of value Rs 1 lakh, Rs 2 lakhs, Rs 3 lakhs, Rs 4 lakhs and Rs 5 lakhs with nearly 1,000 subscribers from nearly 10 villages around Chinaganjam, for more than ten years. He said, "Harikrishna is not paying the amount to the subscriber for the last two years, instead he is offering to pay nominal interest to the amount to them. The subscribers obliged to his request."

Sudhakar said that Harikrishna promised to repay them by selling his assets, but now he served IP notice. "When we went to his house to demand money, Harikrishna took protection of dogs and CCTV cameras threatening to sue us in court," Sudhakar said.

Meanwhile, the victims of the chit organiser alleged that the police inspector was also hand in glove with him. But the police officer claimed that he already clarified to them that he can't do anything without them registering a case.

The victims met in the high school in Chinaganjam on Sunday afternoon. They said that they have listed out the details of nearly 700 subscribers of the chits run by Harikrishna, to whom he has to pay about Rs 8.50 crore. They demanded the government to appoint an inquiry commission on this issue immediately, as most of them are poor and lost almost all savings intended for the future of their families before they take any extreme step. They wanted the commission to go through the transactions of Harikrishna for the last two years and identify the benamies on whose names he put all of his properties and do justice to them.

However, in the IP notice, Harikrishna confessed to the court that he was into prawn cultivation and selling business and took hand loans from many people in Chinaganjam and surrounding villages. He said that due to an unexpected virus, he suffered losses in prawn business. Harikrishna claimed that all he has is movable properties worth Rs 3,000, including household vessels, wooden cots, chairs, six shirts and three pants. He prayed the court to declare him as insolvent and appoint an official receiver for administration and distribute his properties to the lenders, in the interest of justice.

Inkollu CI P Subbarao, who is facing the allegations, claimed innocence. He thrashed the allegations of colluding with the accused and said that he didn't meet the chit organiser even once. The CI said that he explained to the officials and the Minister, who asked him to look into the issue that he cannot involve in civil matter unless they file a cheating case against the accused. He said that he clarified the victims on the legal issues and he cannot risk his job by putting his nose in the issue without proper complaint.