Woman head of NGO, 3 others held for housing scam

A woman running an NGO and three of her associates have been arrested on the charge of cheating 2,700 people a total of Rs 8.1 crore after promising to build houses with overseas subsidy for them in neighbouring Yadadri Bhuvanagiri district, police said Sunday.

K Krishnamma, Chairperson of Malyavi Karunodaya Society for people of Old age and Physically Handicapped, and the three others holding various posts in the society were arrested Saturday, a police release said.

Police recovered Rs 12.22 lakh cash and 'incriminating' material from their possession, it said.

The fraud came to light after a labourer of Tangutur village lodged a complaint with the police.

According to the complaint, Krishnamma visited the village six months ago and assured that she would build double bedroom houses for poor people at a cost of Rs 7.5 lakh each with Rs five lakh as subsidy to be arranged from NRI donors.

The buyers need to pay only Rs 2.5 lakh, she had said and collected Rs 30,000 as advance from several people in the village. However, even six months after collecting the advance, the construction work was not started.

A case was registered based on the complaint and during investigation it came to light the accused had collected a total of Rs.8.1 crores from 2,700 people from different villages in the district by making the same promise.

A hunt was on to nab some other absconding accused, police added.