Police arrest two on the charge of running ponzi scheme
Bagalkot Police have arrested two individuals accused of running a ponzi scheme that defrauded women of over ₹43.40 lakh. Authorities seized financial records and computers following a protest by victims in Bilagi.
Why it matters
The incident underscores the vulnerability of rural populations to financial fraud and the importance of regulatory oversight in micro-finance.
Bagalkot Police have arrested two men on the charge of running a ponzi scheme and duping several women on the promise of higher interest, according to Sri Durga Devi Women Rural Development Organization president Vidya Hallur and secretary Rachana Bantanur. The organisation is in Bilagi.
This follows a case registered against the two and others for collecting money from women and cheating them without returning it.
Initial investigation has revealed that they have collected over ₹43.40 lakh from the victims so far.
Some women staged a protest against the organisation and laid a siege to it on Monday.
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