Belagavi: Belagavi Police have arrested the alleged mastermind behind a ₹25.79 crore investment fraud in which hundreds of investors were allegedly duped through promises of unusually high returns. The accused, identified as Subodh Honnappa Kuge (21), director of Sridevi Kuge Ventures Pvt. Ltd., was arrested by the Malmaruti Police after months of investigation.
According to police, the company allegedly promised investors a 5% monthly return on investments of ₹1 lakh and assured them that the entire principal amount would also be returned after 20 months. However, investors later alleged that neither the promised returns nor their principal investments were repaid.
The case was registered following a complaint filed by Praveen Chandrashekhar Doddamani, a resident of Dharwad, who accused the company of inducing people to invest through false promises of guaranteed high returns.
Police initially found that the accused had collected around ₹2.80 crore from investors. However, a detailed investigation later revealed that the company had allegedly collected approximately ₹25.79 crore from 254 investors using the same investment scheme.
The case has been registered under the provisions of the Karnataka Protection of Interest of Depositors (KPID) Act and other relevant legal provisions. Investigators allege that the company operated an investment scheme that promised unrealistic returns without fulfilling its commitments to investors.
Police had earlier arrested Pramod Fakirappa Halemani (49), who is alleged to have acted as a mentor or guide to the company, on June 18. With the arrest of Subodh Kuge, investigators are now questioning the principal accused to determine how the funds were collected and utilized.
The accused was produced before a court, which remanded him to police custody for further interrogation. Investigators are examining financial records, bank transactions, and other evidence to trace the flow of funds and determine whether additional individuals were involved in the alleged fraud.
Cybercrime expert and former IPS officer Prof. Triveni Singh said investment schemes offering unusually high or guaranteed returns within a short period are often indicators of financial fraud. He advised investors to verify the regulatory status, business model, and legal credentials of any investment company before investing, and to avoid schemes that promise fixed or exceptionally high profits without transparent documentation or regulatory oversight.
