Nagole police have arrested three individuals for allegedly duping nearly 290 investors of around ₹30 crore through a fraudulent high-return investment scheme. The accused—Kitcha Veerabhadra Rao, 51, a resident of Bandlaguda, his wife Rajyalakshmi, and their assistant Venkata Durga Prasad—ran the scheme under the name “Veerabhadra Trading” between June 2024 and July 2025. Investors were lured with promises of unusually high monthly returns.
10% Monthly Returns Promise Hooks 290 Victims
Police sources revealed that the accused guaranteed a 10% monthly return, offering ₹10,000 for every ₹1 lakh invested. To gain credibility, the trio initially paid returns to a few investors. This encouraged more participants, ultimately attracting 290 individuals who collectively deposited close to ₹30 crore. However, payments soon defaulted, leaving a significant portion unpaid.
Investigators stated that the scheme started unraveling after a cybercrime case was registered against Veerabhadra Rao in Gurgaon in May 2025. Rao had been arrested there for using his bank account as a mule in another investment fraud case, resulting in ₹43 lakh being seized. Following this, only about ₹15 crore was recovered by repaying investors, leaving the remaining ₹15 crore outstanding.
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Nagole Police Probe Bank Trails
Upon realising the fraud, victims approached police in Nagole, prompting the registration of a detailed investigation. Authorities are now probing bank accounts linked to the scheme and identifying account holders. Officials noted that the ongoing probe will follow both financial trails and technological footprints used by the accused.
Renowned cybercrime expert and former IPS officer Prof. Triveni Singh said, “Fraudsters often employ social engineering to gain investor trust. They create initial confidence through small payouts and gradually execute large-scale scams. Investors must carefully verify both technical and legal aspects of any investment platform and be wary of promises that appear unusually lucrative.“
Cybersecurity experts emphasize that before investing in any platform, especially online trading or high-yield schemes, users should confirm the legitimacy of the company, ensure proper KYC and two-factor authentication, and avoid pressure tactics or overly attractive monthly returns.
Ponzi Scheme Credibility Pattern Exposed
The Nagole case highlights how high-return schemes can quickly turn fraudulent once trust is established. In this instance, the accused exploited their early repayments to lure a large pool of investors, eventually defaulting on nearly half of the collected funds. The scheme relied heavily on persuasive promises and fabricated credibility to convince individuals to part with substantial sums of money.
Police are currently collecting all transaction records and liaising with banks to trace the flow of funds. The investigation also aims to map the network of the accused, including possible accomplices, to prevent similar scams from occurring in the future. Authorities warned investors to remain vigilant and report any suspicious investment offers promptly.
Nationwide Investor Caution Urged
This incident serves as a cautionary tale for investors nationwide. Fraudsters continue to innovate in the digital and financial space, and even seemingly legitimate investment platforms may be fronts for large-scale scams. Authorities urge the public to undertake thorough due diligence before investing, and to question any scheme that guarantees extraordinarily high returns in a short span.
The Nagole police are committed to pursuing the investigation aggressively, with arrests and asset freezes likely as the case progresses. Meanwhile, investors are advised to treat all offers with skepticism and confirm all technical and legal credentials of investment schemes.
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.
