Bengaluru: Chit‑fund scam - How it happened

A Malayali couple—Tomy A Varghese and Shiny Tomy—ran a chit‑fund company called A&A Chits and Finance in Bengaluru’s Ramamurthy Nagar. They promised high interest rates (12–20%), gained trust by paying interest promptly in the early days, and earned community credibility by sponsoring local religious events and festivals.

Then suddenly, just as some deposits were maturing… they disappeared—phones switched off, the office was locked, their furniture and a flat sold, and billions vanished from hundreds of anxious investors.

🔍 Scale of the fraud

• Reportedly over ₹40–50 crore siphoned from 260–350+ depositors, ranging from ₹1 lakh to ₹4.5 crore per person.
• First complaint lodged by a depositor who lost ₹70 lakh; more followed, prompting FIR under the Chit Funds Act and BUDS Act.
• Bengaluru police are investigating; the couple is reportedly missing, suspected to have planned this exit ahead of time.

📌 Takeaway

1. High early returns often mean high risk: Be wary of schemes paying much more than banks.
2. Word‑of‑mouth trust isn’t foolproof: Community ties helped these scammers gain credibility fast.
3. Verify registration & regulations: Always check if a chit fund or FD is legit under RBI or Registrar regulation.