Nellore: 3-member gang involved in online deposits scam held

Nellore: Dargamitta police on Wednesday arrested a three-member-gang involved in online deposits scam and seized cash of Rs 1.29 crore, 5 laptops and one car from their possession. The accused Yallagolla Michel Suman Babu from Vakadu in Nellore, who is currently residing in Vedayapalem, Yeturi Ravi Kumar from YS Nagar and Dandugula Yalla Srinu from Chandrasekhar Nagar in Kurnool town, had collected Rs 85 crore from public in 7 months.

According to SP Bhaskar Bhushan, Michel Suman Babu, Yeturi Ravi Kumar and Yalla Srinu formed as a team and started "Welpay Company" office at Vedayapalem in February 2020. They are having software developed by "Eye 3 solutions" for securing online deposits.

The SP said the accused has promised the public of paying Rs 200 per every working day, on each deposit of Rs 10,000 for a period of 100-days.

The agents and the sub-agents were involved in securing deposits with 0.5 pc and 0.25 pc of commission respectively. Depositors, agents and sub-agents were assured to be paid Rs.27,500 per each deposit in a span of 100 working days.

The gang had collected Rs 85 crore from 12,600 customers within 7 months and some have opened double accounts for more income, the SP added. Dargamitta police registered a case under Andhra Pradesh Protection of Depositors of Financial Establishments Act – 1999 and Prize Chit and Money Circulation Schemes (Banning) Act, 1978. Further, a team was formed to investigate the case headed by Circle Inspector M Nages waramma.

The firm had not followed any legal procedures and failed to obtain even mandatory permissions from the SEBI/RBI.

Police apprehended the accused on Tuesday at Bujabuja Nellore and recovered Rs 1.29 crore, 5 laptops, one car, 4 mobile phones from them. DSP J Srinivasulu Reddy was also present.