A group of three people, including a woman, started AR Benefit Food Sankranti Kanuka, popularly known as Pappulu Chitti, in 2021 in the Vizianagaram district. The Chits organizers collected Rs 300 per month from each member for a year and provided 24 different types of groceries before Sankranti. As they successfully provided groceries for 2022 Sankranti, word of mouth spread, resulting in over 24000 people becoming members and a total chits amount of Rs 8.09 crore collected in the last 12 months.

However, this year, the organizers did not provide the groceries, so some of the members lodged multiple complaints at the Gurla Police Station. The police then found that one of the main accused, Majji Appala Raju, had invested Rs 3.5 crore in a water plant but failed to arrange the cash needed for purchasing the groceries. The police have recovered items worth Rs 1.28 crore from the three accused.

Two water plants and 16 vehicles in the name of the accused were seized. Gold ornaments worth Rs 44.12 lakh and land documents worth Rs 29.95 lakh were recovered. Cash in five bank accounts totaling Rs 39.06 lakh has been frozen. Superintendent of Police Deepika stated that all the properties will be handed over to the court and distribution will be carried out with the court's permission.