C Belagal (Kurnool district): A man allegedly defrauded farmers, traders and the public of nearly Rs 5 crore in Kurnool district by promising high returns on deposits.

The accused, who worked as a banking agent, has reportedly gone missing, prompting victims to approach the police.

According to sources, Hara Kumar Reddy, a resident of Kambadahal village in C Belagal mandal, was working as a ‘Bank Mitra’ agent for Canara Bank. His responsibilities included assisting farmers in securing crop loans, helping traders obtain business loans and handling certain banking transactions.

Over time, he reportedly encouraged people to invest in a deposit scheme through a loan application, promising high-interest returns. He assured depositors that their returns would increase with the deposit amount, allegedly offering 5 to 10 per cent interest per Rs 100 invested.

Initially, some individuals received interest payments on time, which boosted confidence in the scheme. Encouraged by this, more people, including farmers and business owners, took out loans and deposited the funds with him in a bid to earn high returns.

However, after collecting a significant amount of money, Hara Kumar Reddy allegedly went missing. His house remained locked for a week, raising concerns among depositors. Suspecting fraud, the affected individuals filed complaints with the police.

Victims claim that the accused may have collected around Rs 5 crore before disappearing. The police have registered complaints and launched an investigation into the matter. Further details will be revealed as the inquiry progresses.