Chit fund scam in Bengaluru, In a shocking development that has left hundreds of families devastated, a couple from Kerala, residing in Bengaluru, has allegedly duped more than 700 investors through a massive chit fund scam worth nearly ₹40 crore. The couple, identified as Tomy and Shiny, reportedly fled to Kenya, East Africa, after liquidating their assets and vanishing during the IPL celebrations in Bengaluru.
A&A Chits and Finance A Trusted Name Turned Trap
Tomy and Shiny had been running A&A Chits and Finance for over two decades and had built a strong reputation among investors mainly Malayali families in Bengaluru and Kerala. Their company promised unusually high returns, ranging from 15% to 20%, making it an attractive investment opportunity for middle-class families looking to grow their savings.
For 25 years, the couple operated without raising any suspicion. Investors were drawn in through personal networks, word-of-mouth promotions, and long-term trust that the couple carefully cultivated. Chit fund scam in Bengaluru, But this image of reliability was shattered when news broke of their sudden disappearance on May 3rd, the same day Royal Challengers Bengaluru’s IPL victory celebrations gripped the city.
What Is a Chit Fund?
Chit fund scam in Bengaluru, A chit fund is a traditional financial scheme in India that works like a rotating savings and credit system. Members contribute a fixed amount regularly into a common pool, and one member receives the lump sum in each cycle through an auction or lucky draw. While many chit funds operate legally under strict rules, others especially unregulated ones often turn out to be fraudulent.
In the case of A&A Chits and Finance, the scheme was not officially recognized under regulatory frameworks. That made it difficult for investors to verify how their money was being handled.
How the Scam Unfolded
According to Deputy Commissioner of Police (Bengaluru East), D Devaraja, the couple had carefully planned their escape. Before fleeing, they sold off their movable and immovable assets houses, cars, and business properties at below market prices. They left the country on a tourist visa and flew to Kenya on May 3rd, Devaraja said in a press statement.
Since then, more than 400 formal complaints have been filed, primarily from victims in Kerala. Police suspect that many more people are yet to come forward, fearing embarrassment or social stigma.
The couple’s financial records, bank transactions, and personal network are now under thorough investigation. Chit fund scam in Bengaluru, Authorities are also working with international agencies to trace their movements and initiate legal proceedings for extradition.
Victims Speak Out
Chit fund scam in Bengaluru, Among the many affected, Navina—a victim who lost ₹10 lakh—spoke to ANI about the betrayal. “We trusted them blindly. They ran this chit fund for more than two decades and had the backing of the entire community. No one ever imagined they could pull off something like this,” she said.
She also revealed how the couple took advantage of the city’s distraction during the IPL celebrations. They used the noise and excitement of RCB’s victory to vanish. The timing was deliberate and cunning.
Many victims have said that they considered Tomy and Shiny to be like family. The emotional and financial damage caused by the scam has been devastating. Some families reportedly invested their life savings or retirement funds into the scheme, only to see it vanish overnight.
Legal Action Underway
A First Information Report (FIR) has been filed against Tomy and Shiny under several serious charges including:
- BNS 317 & 318 (New Indian Penal Code equivalents for fraud and criminal breach of trust)
- Chit Funds Act, 1982
- Banning of Unregulated Deposit Schemes (BUDS) Act, 2019
Authorities are now in touch with the Ministry of External Affairs (MEA) to initiate extradition procedures. Their passports may also be canceled soon in order to bring them back for trial.
Meanwhile, efforts are being made to trace and recover whatever assets can be salvaged. Chit fund scam in Bengaluru, The couple’s house is reportedly under a bank loan and is currently being attached by authorities. However, this offers little hope to victims who are desperate for refunds.
Why Chit Fund Scams Keep Happening
Chit fund scam in Bengaluru, This is not the first time a chit fund scam has made headlines in India. From the Saradha scam in West Bengal to the IMA scam in Karnataka, unregulated financial schemes have repeatedly preyed on common people’s financial vulnerabilities and lack of awareness.
The A&A Chits and Finance case highlights once again the urgent need for:
- Tighter regulation of chit funds
- Increased financial literacy
- Stricter background checks for financial operators
- Public awareness about BUDS Act and other protection laws
What Should Investors Do Now?
If you or someone you know has been a victim of this scam, here are a few steps to take:
- File a police complaint immediately.
- Gather all proof of transactions passbooks, receipts, WhatsApp chats, etc.
- Contact your bank to block any suspicious transfers.
- Join support groups of other victims to stay updated on legal developments.
- Avoid further dealings with unregistered or unregulated financial bodies.
Conclusion
Chit fund scam in Bengaluru, The Bengaluru chit fund scam involving Tomy and Shiny is a sobering reminder that trust in financial dealings should always be backed by verification and regulation. Over 700 families have been left shattered, with life savings wiped out in a scam that was decades in the making. As the investigation continues, the hope remains that justice will be served, and at least some of the funds will be recovered.
Chit fund scam in Bengaluru, Let this be a wake-up call for all never invest in dreams that promise returns too good to be true.
For the full scoop and in-depth analysis, read the complete report on Chit fund scam in Bengaluru legalmaestros.com
