On November 19, 2025, Warangal Police arrested Bhavita Sri Chits Managing Director Tatipalli Srinivas in Hanamkonda, ending a months-long manhunt tied to a massive chit fund scam. The arrest follows the earlier detention of the company’s chairman and former Warangal mayor, Gunda Prakash Rao, in September.
The company is accused of collecting monthly deposits from members across Telangana—particularly in Narsampet, Hanamkonda, and Warangal—but failing to return the funds after maturity. As complaints mounted, Bhavita Sri Chits abruptly shut down its branch offices, leaving depositors in financial distress.
Chit Fund Scam Leaves Depositors in Crisis
Victims who visited the company’s main office in Hanamkonda were allegedly met with abuse and aggression from the management. The firm had expanded rapidly, even opening branches in Hyderabad, but began closing them one by one as pressure from depositors increased.
Authorities believe the management diverted funds into real estate ventures and other businesses, violating chit fund regulations. The company is also accused of selling low-cost land to members at inflated prices and illegally accepting fixed deposits, breaching Reserve Bank of India norms.
Police Action and Asset Seizure Demands
With both top executives now in custody, depositors are hopeful for justice. Victims have urged police to seize all assets acquired by the company’s representatives and their associates to recover their money.
According to the Deccan Chronicle, the scam has triggered widespread outrage across the erstwhile Warangal district, where hundreds of families had invested their savings in the now-defunct chit fund scheme.