Nalgonda College Dropout Arrested for Rs 50 Crore Fraud in Investment Scheme
A 26-year-old college dropout from Nalgonda, Ramavat Balaji Nayak, has been arrested for defrauding hundreds of people of Rs 50 crore. The scam came to light after he suffered losses in the real estate market and stopped repaying investors.
FraudInvestment SchemeNalgondaRamavat Balaji NayakReal EstateReal EstateOct 12, 2025
Giving details about the case during a press briefing, Nalgonda superintendent of police (SP), Sharat Chandra Pawar, said that Nayak borrowed Rs 5 lakh from his relatives to start an ice cream parlour. During the COVID-19 pandemic in 2020, he incurred losses and shifted to the real estate market. He began borrowing money from locals and promised them high monthly interest rates.
Initially, Nayak repaid as promised and slowly began building trust. He recruited agents, mostly relatives and acquaintances, who collected deposits from residents of Putnagandi, Gaddamidi, Chinthal, Nakkalapeta, and Pavurala Gattu. Over time, he accumulated around Rs 50 crore.
Nayak started living a lavish lifestyle and bought expensive cars, villas, and land in Miryalaguda, Hayatnagar, Nereducherla, Palugu Thanda, and Damaracharla. The cheating case came to light after Nayak invested about Rs 2.3 crore in wine shops, stock markets, and software companies, suffering heavy losses and subsequently stopping repaying the investors and fleeing.
Police said Nayak has cheated 106 people so far, and many more are coming forward to register their complaints. During the raid, they seized two SUVs worth Rs 80 lakh, property documents, 36 promissory notes, 77 blank promissory notes, seven mobile phones valued at Rs 5.5 lakh, a register book, and an Excel sheet containing transaction records.
A case has been registered under Sections 316 (2) and 318 (4) of the BNS and Section 5 of the Telangana Protection of Depositors of Financial Establishments Act, 1999.
Frequently Asked Questions
Who is Ramavat Balaji Nayak?
Ramavat Balaji Nayak is a 26-year-old college dropout from Vaddi Patla village in Nalgonda, Telangana, who was arrested for defrauding people of Rs 50 crore.
How did the scam start?
The scam started when Nayak borrowed Rs 5 lakh from his relatives to start an ice cream parlour. After incurring losses during the COVID-19 pandemic, he shifted to the real estate market and began borrowing money from locals, promising high monthly interest rates.
How much money did Nayak collect from investors?
Nayak collected around Rs 50 crore from investors over time.
What did Nayak do with the money?
Nayak used the money to buy expensive cars, villas, and land. He also invested about Rs 2.3 crore in wine shops, stock markets, and software companies, but suffered heavy losses.
What actions did the police take?
The police seized two SUVs worth Rs 80 lakh, property documents, promissory notes, mobile phones, a register book, and an Excel sheet containing transaction records. A case has been registered under relevant sections of the law.
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