The State Bank of India branch at Palakurthy, a major village in Warangal district and also the headquarters of local administration unit, has acquired the distinction of front runner with opening 12,000 savings bank accounts within a short span of two months among the branches all over India. That is a real achievement for the branch manager.
But when the team of Corporate Frauds Watch including its counsel Mr Mastan Vali and right to information activist Mr V V Rao, visited the village on Saturday, it was revealed that it was only a dubious distinction. A group of villagers approached Corporate Frauds Watch to bail them out from a crisis which was actually a trap they had fallen in.
A real estate firm, Viswa Jyothy Realtors Private Ltd lured them with false promises of daily earnings from their deposits and they had fallen for it. All they have to do is to deposit Rs. 10,000 with the company and the company would repay Rs. 1000 everyday for 40 days. Nobody questioned how Rs. 10,000 would become Rs. 40,000 in 40 days. The real estate company did not reveal the secret how they acquired the magic wand to create wealth. The modus operandi is similar. The villagers were asked to hand over cash to be deposited in one person's account i.e. the franchisee holder. From the next day, the refund installments would start crediting into the accounts of the 'investors'. For that purpose, they all opened savings bank accounts in the local branch of State Bank of India. That is how the bank branch has achieved the distinction of opening 12,000 accounts.
Ranging from Rs 50,000 to Rs. 20 lakh (two million), they deposited with the real estate company and very few of them received some amounts. Meanwhile, the police got wind of the scam and arrested the kingpin behind the racket and seized bank accounts alongside some cash. Now the 'investors' are worried about the police arrests for participating in such money circulation scheme and more for their money.
Not only Viswa Jyothy, there is also Gurudev Realtors Pvt Ltd which has collected several crores of rupees from this village and all over other parts of Andhra Pradesh. The promise is the same and default is also same.
The day long meeting with them revealed one thing. They are still under the illusion that they would get back the promised amount if there was no police interference. It is learnt that the person behind Gurudev Realters is the son a sitting Member of Parliament.
The Corporate Frauds Watch learnt that the villagers have been sufficiently hypnotized by such crooks that they have already taken part in several schemes from the days when Amway entered their village. Of course, now they are disillusioned with Amway and the likes but they are still under the belief that the people who joined first would get good amount of returns and the latter entries would lose their money. There were members of the latest scam of speakasiaonline also among them.
It is understood that they had lost all human feelings for their friends and relatives. They want to make money first before the scheme is closed. They refuse to think of 'mathematical impossibility'.
This is how the money circulation schemes have been corrupting the minds of people even in the remotest parts of India. It is high time, the Government machinery plunged into action to curb this menace.