In a joint operation, the sleuths of Task Force and the Central Crime Station (CCS) arrested the key accused in the City Info Solutions case, Vayugandla Ramesh and seized Rs 40 lakh cash and documents related to properties worth Rs 2.5 crore.

As many as 1,800 victims have approached the CCS and lodged their complaints against the firm. Preliminary investigation revealed that the accused had collected Rs 45 cr deposits but paid back Rs 33 cr and misappropriated Rs 10 crore.

Additional commissioner of police (Crimes) Mohammed Ahsan Reza told Express that they arrested 35-year-old Ramesh, the MD of the firm, in the city.

'We took Ramesh into custody on Thursday. We conducted a raid on his house and seized cash Rs 40 lakh, a Verna car, a laptop and several property documents.

We are verifying the documents to ascertain the total worth of property,' Reza said. Sources, however, said the properties owned by Ramesh are worth several crores of rupees.

As per the records of the finance firm, Ramesh collected about Rs 43 crore and paid back Rs 33 crore to the investors towards their returns and misappropriated the balance of Rs 10 cr.

'The money was used for his personal luxuries and for online trading in commodity market,' Reza said. Ramesh also owns Cityinfo ads.com and Yagna Chit Funds Pvt Ltd.

Police said Ramesh collected deposits promising handsome returns and offering part-time jobs. He also started Yagna Chit Funds Pvt Ltd and collected about 65 lakh from general public.

Police found that Ramesh, a B.Com dropout, was earlier arrested in a motorcycle theft case at Kavali and a cheating case in Tirupati.

Later, he shifted to Malakpet here. His wife, who lives separately, has filed a dowry harassment case against him.

Meanwhile, the complainants alleged that Ramesh, who started his business in Musheerabad in November 2011, announced money deposit schemes and duped them.

On deposits ranging from Rs 3,000 to Rs 12,000, they were offered half of the deposit amount as returns each month for the next 10 months.

For example, if a depositor invests Rs 3,000, he or she will get back Rs 1,500 each month for the next 10 months. The CCS police registered a case against him.