Visakhapatnam police unearth more than ₹50 crore worth financial fraud

The Visakhapatnam police have unearthed a huge financial fraud perpetrated in the name of Sneha Mutually Aided Co-operative Society Limited (MACS) and several associated benami firms.

The management collected huge public deposits by promising abnormally high returns and subsequently misappropriated the funds by diverting them to personal accounts, benami companies, and immovable properties across multiple districts.

The police also found that a majority of the victims belong to the SC community and other middle-class families who invested their life savings believing that the Society was inspired by Dr. B.R. Ambedkar’s ideology and operated under the slogan ‘Pay Back to Society’.

Addressing a press conference at the police conference hall on Friday (December 5, 2025), Deputy Commissioner of Police Manikanta said that based on separate complaints from depositors, the following FIRs have been registered at Duvvada, Dwaraka, Gopalapatnam, II Town against the management of Sneha MACS.

Explaining the modus operandi, the DCP said the police enquiries revealed that Sneha MACS management circulated false assurances, projected Ambedkar’s ideology, and promised abnormally high interest rates to attract deposits.

The depositors’ funds were diverted to personal accounts, benami companies, Sneha MACS branches at Hyderabad and Ponnur, Sneha TV, United Publications, Prudhvi Constructions, Sneha Priya Financial Services, and other related entities.

He said that approximately ₹56.10 crore has been identified as recoverable/diverted funds, adding that Sneha MACS has 2,504 depositors and deposits payable amount to around ₹55.10 crore.

While several directors, staff and benami operators were arrested, including, Look Out Circulars (LOCs) proposals have been sent against president, Sneha MACS, Katikala Swarna Latha, CEO/Director, A Punnarao, Director, Gummadi Manoranjan, and others.

In the investigation, the police found that several properties were acquired using misappropriated depositor funds which include approx. 21.12 acres at Venkannapalem/Rayapurajupeta in Chodavaram of Anakapalli, 0.47 acres at Duppituru in Yelamanchili, 1.50 acres at Dabbanda in Anandapuram, 2450 sq. yards near Sheelanagar STBL area, 2125 sqft flat at Chinna Waltair. “These properties have been surveyed, geo-tagged, and preliminary restrictions on transactions have been initiated,” the DCP said.

“We have also sent requisitions to the sub-registrars to freeze transactions and withhold Powers of Attorney linked to the identified properties. Steps are under way to attach properties and initiate processes for recovery of diverted funds,” DCP Manikanta said.

He further concluded thet efforts will continue to identify more victims, trace more benami properties, and arrest the remaining accused. Assistant Commissioner of Police, East Zone, Annepu Narasimha Murthy and others were present.