In a major crackdown on organised cyber investment fraud, the Noida Police have arrested a man allegedly linked to a China-based cybercrime syndicate that duped investors across several Indian states of nearly ₹12 crore. The accused, Sudhakar Garg (40), a resident of Rohtak in Haryana, was arrested for his role in a sophisticated online investment scam that promised guaranteed profits from stock market trading.
Investigators said the fraud was part of a well-coordinated, multi-layered network operating across state and national borders, using shell companies, GST registrations, mule bank accounts and cryptocurrency platforms to siphon off funds and conceal financial trails.
Complaint Triggered the Investigation
The case came to light after a complaint was lodged with the Noida cybercrime unit on December 3, alleging that unknown individuals had persuaded the complainant to invest large sums by posing as professional stock market advisors. The fraudsters promised fixed and assured returns, backed by fabricated trading data and continuous online engagement to build credibility.
Once trust was established, the victim transferred significant amounts, which were immediately routed through multiple bank accounts. Preliminary investigation revealed that the money was systematically layered and eventually converted into digital assets to evade detection and recovery.
Legal Provisions Invoked
Based on the complaint, police registered a case under:
- Section 318(4), Bharatiya Nyaya Sanhita (BNS) – cheating
- Section 319(2), BNS – cheating by personation
- Section 66D, Information Technology Act – online fraud
Officials said bank accounts linked to the scam were promptly frozen to prevent further diversion of funds.
Social Media Recruitment and Shell Companies
During interrogation, Garg disclosed that he came into contact with a man identified as Rashid Khan alias “Lucky”through Instagram. Khan allegedly acted as a key coordinator and instructed Garg to establish GST-registered firms and open multiple current accounts in their names.
Police said these firms had no genuine business operations and existed solely to act as conduits for fraud proceeds. Account holders were allegedly summoned to Mumbai, where operational instructions were provided and transactions coordinated.
Commission-Based Model and Crypto Laundering
Investigators revealed that Garg operated on a commission-based model, receiving 7% to 10% of the money deposited into the accounts he managed. Payments to him were largely made in cash.
Account holders were paid 1% to 3% in US dollars, which were later sold on cryptocurrency platforms. The proceeds were then transferred through UPI transactions into other bank accounts, further complicating the money trail.
Police said this hybrid use of traditional banking channels and crypto platforms was a deliberate strategy to bypass financial monitoring systems.
Multiple Arrests, Network Expands
Before Garg’s arrest, police had already apprehended four other accused on December 5 — two from Mumbai and two from Hyderabad — all of whom were sent to judicial custody. Garg is the fifth accused arrested in the case.
Investigators said Garg had been actively involved in cyber fraud for nearly one year, and at least five bank accounts linked to him were used to facilitate illegal transactions.
37 Complaints Across States
Authorities confirmed that 37 complaints linked to the accused accounts have been recorded on the National Cybercrime Reporting Portal (NCRP). Victims are spread across Karnataka, Maharashtra, Tamil Nadu, Delhi and Uttar Pradesh, indicating the pan-India reach of the fraud.
Efforts are underway to identify overseas handlers and additional domestic facilitators, with police suspecting deeper links to China-based cybercrime operators.
Rising Threat of Online Investment Frauds
Police officials warned that cyber investment scams are becoming increasingly sophisticated, exploiting social media platforms and the growing public interest in stock market trading. Fraudsters often use promises of guaranteed returns — a clear red flag — to lure victims.
Authorities have urged citizens to exercise caution, verify investment credentials independently, and report cyber fraud immediately through the national cybercrime helpline (1930) or cybercrime.gov.in to enable timely intervention.
