Days after his home was attacked by enraged residents, Nalgonda district police have successfully nabbed 26-year-old Ramavat Balaji Nayak, who is accused of defrauding hundreds of individuals through an investment scheme totaling around ₹50 crore.
Nayak, a resident of Palugu thanda in Vaddi Patla village, Nalgonda, was arrested on Saturday. He faces charges under Sections 316 (2) and 318 (4) of the Bharatiya Nyaya Sanhita, as well as Section 5 of the Telangana Protection of Depositors of Financial Establishments Act 1999, which were registered at the Gudipalli police station.
The Rise and Fall of a Dubious Scheme
Nalgonda Superintendent of Police, Sharat Chandra Pawar, shed light on the fraudulent operation. After failing to complete his graduation in 2019 and suffering losses from an ice cream parlor business he started in 2020, Balaji Nayak pivoted to real estate. It was during this period that he began borrowing money from locals, offering an exceptionally high monthly interest rate of up to ₹10 for every ₹100 invested.
To establish credibility, Nayak initially made prompt repayments to his early investors. Once a level of trust was established, he expanded his network by recruiting agents, many of whom were his own relatives and acquaintances. These agents were tasked with collecting deposits from residents in communities such as Putnagandi, Gaddamidi, Chinthal, Nakkalapeta, and Pavurala Gattu. He further cemented confidence by issuing promissory notes and consistently paying interests, giving the impression of a legitimate and profitable venture.
However, this elaborate facade concealed a darker truth. Over time, Nayak amassed approximately ₹50 crore. This vast sum was then used to acquire luxury items, including expensive cars, opulent villas, and extensive land parcels in areas like Miryalaguda, Hayatnagar, Nereducherla, Palugu thanda, and Damaracharla. Additionally, he reportedly invested about ₹2.3 crore in wine shop permits, speculative stock market trading (futures and options), and various software companies, all of which resulted in significant financial losses.
As his financial structure became unsustainable, Balaji Nayak defaulted on payments to his investors and subsequently fled. His disappearance led to an outcry, culminating in a vengeful attack on his residence by the victims.
Police Intervene: Seizures and Call for Action
In the aftermath of his arrest, police confiscated significant assets, including two SUVs valued at ₹80 lakh, numerous property documents, 36 filled promissory notes, 77 blank promissory notes, and seven mobile phones estimated at ₹5.5 lakh. A register book and an excel sheet meticulously detailing the fraudulent transactions were also seized. Investigators have, to date, identified 106 victims affected by Nayak’s scheme.
SP Pawar confirmed that specialized teams, under the leadership of the Additional SP, are actively working to locate and trace any additional ‘benami’ (proxy-held) assets. These assets will be recovered through legal court proceedings to compensate the victims. The SP urged all individuals who have fallen victim to this fraud to bypass intermediaries and directly approach the Gudipalli police station with their relevant documents to file formal complaints.