The prime accused in an alleged Hyderabad chit fund scam involving collections of up to ₹40 crore from nearly 60 people was detained by immigration officials at Rajiv Gandhi International Airport after arriving from Abu Dhabi, police said.
Veda Seethamma, also known as Seetha Veda, a resident of HMT Hills in KPHB, was handed over to KPHB police after officials identified her on the basis of a look-out circular. She was allegedly involved in collecting large sums from members of the public through chit schemes and other financial arrangements without repaying them.
A complaint filed by victims at KPHB police station led to the registration of Crime No. 1080/2026 on August 24. The complaint initially concerned an alleged amount of ₹16 crore. Investigators later found that Seetha, her husband V. Ramana Reddy and their daughter Veda Harisha Reddy had allegedly collected as much as ₹40 crore from nearly 60 individuals.
According to the report, the family operated without authorisation. The money was collected partly through chit schemes and partly as loans carrying interest, the investigation found. The allegations have not been established by a court, and the investigation is continuing.
KPHB police had arrested Ramana Reddy on September 16 and produced him before a court. Seetha had travelled abroad before the police issued a look-out circular for her. Immigration officials identified her at the airport during her return and detained her before transferring her to the police.
Given the scale of the alleged financial transactions, the case has been transferred to the Cyberabad economic offences wing. It has been re-registered as Crime No. 111/2026, placing the investigation with the specialised unit that handles complex financial offences in the region.
The case illustrates the role of coordination between immigration authorities and local police in tracing accused persons who leave the country during an investigation. It also brings attention to the risks faced by residents who place savings in informal or unauthorised financial arrangements without confirming the operator’s legal status.
The investigation is being conducted under provisions of the Bharatiya Nyaya Sanhita, the Chit Funds Act, 1982, and the Telangana Protection of Depositors Act, 1999. The Cyberabad economic offences wing is continuing its inquiry into the alleged collections, the number of affected depositors and the movement of funds.
