The Special Task Force (STF) of Uttar Pradesh has busted a massive investment fraud scheme worth ₹2,283 crore, arresting two key masterminds from Delhi. The accused allegedly defrauded thousands of investors across multiple states by luring them with promises of high returns on stock market investments and digital trading platforms.
The two arrested individuals, identified as the directors of multiple shell companies, operated from various locations in Delhi. Preliminary investigations reveal that the duo used a network of agents and online advertisements to attract unsuspecting investors, many of whom were unaware of the fake nature of the investment plans.
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High-Return Promises, No Real Investments
According to officials, the scam operated on a classic Ponzi structure. Investors were assured monthly returns as high as 20%, with initial returns being paid to attract more investments. However, the collected funds were diverted to personal accounts and luxury assets, rather than genuine trading or stock activities.
The STF acted on complaints registered by duped investors and financial intelligence inputs. During the arrests, several incriminating documents, fake contracts, and digital records were recovered. Authorities confirmed that at least 5,000 investors were directly impacted.
STF officials added that multiple bank accounts and shell firms linked to the duo are under scrutiny. Authorities have frozen assets worth over ₹100 crore so far.
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National-Level Investigation Underway
With the scale of the fraud stretching across state lines, central enforcement agencies including the Enforcement Directorate (ED) and Economic Offences Wing (EOW) are expected to join the investigation. The Ministry of Corporate Affairs has also been alerted regarding the misuse of company registrations.
Cybersecurity experts and financial regulators have warned the public against schemes that guarantee unusually high returns without transparency or regulatory oversight. The case has reignited concerns over unchecked online investment platforms proliferating on social media.
About the Author – Anirudh Mittal is a B.Sc. LL.B. (Hons.) student at National Forensic Sciences University, Gandhinagar, with a keen interest in corporate law and tech-driven legal change.