Woman accused in chit fund scam arrested at Hyderabad airport

On September 16, the KPHB police arrested Seetha's husband, Ramana Reddy, in connection with the case.

Hyderabad: Veda Seethamma aka Seetha Veda, the prime accused in a Rs 16 crore chit fund scam, was arrested at the Hyderabad airport on Sunday, October 18.

Seetha, a resident of HMT Hills in KPHB, had allegedly collected the amount on the pretext of chit schemes and fled to the United States without repayment. Based on a complaint by the victims, the KPHB Police registered a case against the woman on August 24 for fraud.

On September 16, the KPHB Police arrested Seetha’s husband, Ramana Reddy, in connection with the case. Since Seetha was abroad, a Look Out Circular was issued against her. Based on the significant amount, the case was transferred to the Economic Offences Wing (EOW).

When contacted, there was no response from the EOW.

On October 18, Seetha was arrested upon her arrival from Abu Dhabi. Apart from being booked for cheating under Section 318(4) of the Bharatiya Nyaya Sanhita, she was booked under the Chit Funds Act, 1982, and the Telangana Protection of Depositors Act, 1999.

Scam dates back to 2024

Seetha and Reddy duped 45 people of Rs 16 crore since April 2024. A complainant, who is a private employee, had approached the EOW of the Cyberabad Police and filed a complaint stating that Ramana Reddy, Sita and their family member Harisha Reddy operated the chit fund.

The fraud came to light when investors found the accused’s house at HMT Hills, Addagutta, locked and their phones switched off.

Based on the complaint, the EOW registered a criminal case. The complainant, G Venkateshwar Rao, said he had known Reddy for the past 10 years through common friends. The complainant told the police that Reddy informed him of the chit fund operated by Sita and Harisha and persuaded him to invest.

Believing him, the complainant joined two chit fund groups of Rs 10 lakh each in April 2025. Rao invested Rs 12.5 lakh over a period of 16 months. The fraudsters persuaded him to deposit Rs 50 lakh on a promise of 2 per cent monthly interest, but the amount was not repaid.

When Rao visited the house of the accused to pay his instalment, he found the premises locked.