A suspected chit fund scam has surfaced in Moradabad, where investors were allegedly duped of ₹32.60 lakh after being promised hefty returns. Acting on a court directive, Civil Lines police have registered a case of cheating and forgery against six named individuals and four unidentified persons.
The complaint was filed by Rajendra Singh, a resident of Sanjarpur village in the Chhajlait area. In his petition, Singh alleged that the accused launched a chit fund company named ‘Jan Labh Nidhi Limited’ in 2018 and persuaded people to invest by assuring attractive profits.
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Funds Mobilised Through RD and FD Schemes
According to the FIR, the accused collected money from villagers and others under the guise of recurring deposit (RD) and fixed deposit (FD) schemes. The complainant stated that he and several of his acquaintances deposited substantial amounts in installments.
As per the complaint, Rajendra Singh and others—including Naveen Kumar, Arvind Kumar, Naresh Kumar, Rampal Singh, Rajpal Singh, Rekha Yadav, Gaurav Yadav, Maya Devi, Sunita Devi, Uma Devi, Pratigya Yadav, Vimla Devi, Shilpi Yadav, Swati Yadav and Nemisharan—together deposited ₹6.50 lakh.
Similarly, Kishan Pal allegedly invested ₹6.50 lakh, Jai Kumar ₹2.5 lakh, Ajab Singh ₹2 lakh, and Vishnu Singh ₹1.5 lakh. In total, ₹32.60 lakh was reportedly collected from multiple investors.
Allegations of Threats Over Refund
The victims have alleged that once the investment tenure ended and they sought repayment along with promised returns, the accused began avoiding them. When pressure mounted, they were allegedly threatened instead of being refunded.
Left with no alternative, the complainant approached the court, which subsequently ordered registration of a case.
Following the court’s direction, an FIR was lodged at Civil Lines police station against Rajveer Singh Yadav, his wife Madhu Yadav, son Abhishek Yadav, daughter Prachi, Suraj Yadav, his son Rakesh Yadav, and four unidentified individuals.
Investigation Underway
Police have initiated an investigation into the matter. Officials are scrutinising investment documents, receipts, and bank transaction details to ascertain the flow of funds. Efforts are also underway to identify whether more individuals were duped in a similar manner.
Investigators are examining whether the total amount involved exceeds ₹32.60 lakh and whether the company was legally registered or operating without authorization.
Rising Concern Over Chit Fund Frauds
Cases involving fraudulent investment schemes and chit funds have periodically surfaced in the region, raising concerns among residents. Experts caution that unusually high return promises should be treated with suspicion and that investors must verify a company’s registration and financial credentials before committing funds.
The probe is ongoing, and further legal action will depend on the findings of the investigation.
About the author – Rehan Khan is a law student and legal journalist with a keen interest in cybercrime, digital fraud, and emerging technology laws. He writes on the intersection of law, cybersecurity, and online safety, focusing on developments that impact individuals and institutions in India.
