Nalgonda: Districtpolice arrested Ramavath Balaji Naik, accused of cheating hundreds of tribal people by luring them with promises of unusually high interest rates and collecting crores of rupees through his agents. Superintendent of Police Sharath Chandra Pawar revealed the details at a press conference on Saturday.

According to the SP, Naik, a resident of Palugutanda in Vadipet village, PA Pally mandal, targeted gullible tribal families. He promised returns of up to 240 percent—far above the normal 7–8 percent offered by banks—and began collecting deposits from villagers. For six months, he stopped paying interest, leading to several complaints. Police arrested him in Nalgonda and seized two SUV cars and several documents. Balaji Naik, who completed his degree in 2019, initially borrowed Rs 5 lakh from relatives at 2 percent interest to start an ice cream business but suffered losses. He later turned to real estate, claiming he would pay 6 percent interest, and managed to collect large sums from locals— Rs 10 lakh from one and Rs 5 lakh from another—while paying them regular interest to build trust.

As his credibility grew, he recruited agents across nearby tribal hamlets like Puttangandi, Gaddamiditanda, Chintaltanda, Nakkalapet, Pavuralagattu, and others, amassing deposits worth several crores.

For three years, Balaji regularly paid interest, which convinced people to invest even larger sums. When payments stopped six months ago, angry investors confronted him, prompting his arrest after multiple complaints. Police seized two luxury vehicles worth Rs 80 lakh, 36 promissory notes, and seven cell phones. Preliminary investigation suggests he collected about Rs 46 crore from 106 individuals.

A case has been registered under the Deposits Act, and further investigation is underway to trace his benami properties.

SP Sharath Chandra Pawar assured victims—mostly tribal investors—that justice will be served.