Jawahar Nagar police in the Rachakonda commissionerate on Saturday arrested two persons for allegedly defrauding customers in the name of selling two-wheelers under its various schemes.
Police said K. Pallavi Reddy of Medipally and P. Sanjay of Jawahar Nagar together had opened multi-brand two-wheeler stores in 2019 at Dr. A.S. Rao Nagar, at Dammaiguda in 2020 and other outlets at Maheshwaram, Mansanpally X roads and Domadugu.
The duo encouraged customers to buy two-wheelers, while making them invest in unreliable schemes, to make easy money.
Schemes included pyramid model, where a customer needed to pay only 60% of the vehicle cost and join four new customers to avail full loan clearance in 12 payments. Reddy and Sanjay would pay only 20% towards down payment and siphon off the remaining after arranging bank finance.
Their other game plans were waiting period scheme, in which vehicles were offered at 50% price if paid upfront, but with a compulsory 100-day wait, and the investment scheme, where customers were lured with double returns after 100 days.
Police said there were close to 300 aggrieved customers and the fraud amounts were to the tune of ₹ 2 crore.
The duo was booked for cheating and under various provisions of the Prize Chits and Money Circulation Schemes (Banning) Act and the AP Protection of Depositors of Financial Establishments Act.