Visakhapatnam-based lawyer imprisoned for a year in chit-fund scam

The former Joint Secretary of the Visakhapatnam Bar Association (VBA) and current lawyer, Angara Venkata Lakshmipathi Rao, has been imprisoned for a year after a verdict by Chief Metropolitan Magistrate J Padmavathi in a case of chit-fund scam. The advocate, along with his wife, allegedly targeted his colleagues and amassed a huge amount until September 2019 and failed to repay it. Agitated by the fraudulent activity

As per the report, Rao convinced his fellow advocates to contribute R. 5000 each per month towards what they believed to be a legitimate chit-fund initiative. However, it was revealed that he had no intention of operating a genuine chit-fund. As a result, numerous victims raised complaints with the Two Town Police Station, prompting an investigation into Rao’s illicit activities.

The subsequent police investigation gathered substantial evidence against the former Joint Secretary of VBA and his wife, leading to the filing of a charge sheet against them. The couple was found guilty under sections 4 and 5 of the Prize Chits Money Circulation Scheme (PCMCS) (Banning) Act of 1978, legislation enacted to curb fraudulent practices associated with chit-funds. Consequently, Chief Metropolitan Magistrate J Padmavathi delivered a verdict and imprisoned the Visakhapatnam-based lawyer for a year alongside a fine of Rs 8000.

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