VISAKHAPATNAM: In yet another financial scam, nearly 7,000 investors in Vizag district were duped by Bommarillu Farms and Villas India Ltd that cheated nearly 20,000 investors in the state to the tune of over Rs 150 crore. The scam came to light after investors in the city lodged three complaints with various police stations late on Friday night after the company failed to repay their investments even after the maturity of its schemes.
Additional deputy commissioner of police (crime wing) Varadarajulu said they have started investigations after receiving complaints from investors.
With news spreading that the company was planning to down its shutters and investors pressurizing them to pay their money back, around 2,500 agents of the company also started approaching the police.
The Hyderabad-registered Bommarillu Farms and Villas, which was floated in August 2011, has 10 branches across the state, including the Port City. It allegedly collected money from nearly 20,000 investors in the state over the past three years by unleashing a high decibel campaign by roping in Tollywood stars like Tapsee and assuring them of hefty returns. The company also gave investors ownership letters of various lands.
Though the company was started by Raja Rao Rayala of West Godavari district, sources said he handed over the company to one of the directors, Venkata Rao, who has been running the show for the past one year with four other directors.
The complaints came even as investors of the fraud company have been agitating over the past one week in the city for repayment of their dues. On Saturday too, the investors, led by CPI activists, staged a dharna in front of the company’s office in the city.
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