Mumbai | In a major breakthrough in a multi-crore investment fraud case, a special court has remanded accused father-son duo Rashmikant Thanawala and Dipen Thanawala to the custody of the Economic Offences Wing (EOW) till April 21. Investigators allege that the duo mobilised over ₹150 crore through a well-orchestrated investment network run for nearly a decade, luring investors with promises of fixed monthly returns of 2% and lucrative gains from initial public offerings (IPOs).
Granting custody, the court observed that a detailed probe into the money trail, verification of actual investments, and identification of assets allegedly acquired using investor funds were essential at this stage. Preliminary findings suggest that the funds collected were not deployed as promised but were instead routed through multiple companies and bank accounts.
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Investigating agencies have also flagged the possibility of an international link in the fraud. There are indications that a portion of the funds may have been transferred abroad, prompting authorities to examine overseas accounts and assets. Efforts are underway to trace how investor money was layered and whether it was used to acquire properties in India and outside.
The accused were arrested on April 14 and produced before the court, where the investigating team sought custodial interrogation. According to the prosecution, several bank accounts, digital devices, and associated entities are yet to be examined in detail. The funds were allegedly collected through various investment channels and moved across multiple layers, making it difficult to establish the end-use and final destination.
The case surfaced following complaints by a group of investors, who alleged that they were systematically deceived. The complainants described the operation as a “pre-planned and organised financial fraud” and claimed that the total amount involved could exceed ₹150 crore. Investigators believe that more than 50 investors may have been affected.
As per the complaint, the accused assured investors of fixed monthly returns of 2%, translating to approximately 24% annually. They claimed that the funds would be invested in derivatives trading and IPO opportunities to generate consistent profits. Initially, some investors reportedly received payouts, which helped build trust. However, payments allegedly stopped towards the end of 2025, after which investors were repeatedly given assurances and shifting timelines.
Victims have alleged that when they began demanding their money back, they were met with evasive responses and repeated delays. To maintain credibility, the accused allegedly used fake digital platforms and dashboards that displayed fabricated data about investments and returns.
Investigators have further found that several online interfaces and banking dashboards shown to investors were cloned or entirely fake, with no linkage to any legitimate financial system. These platforms were used to create the illusion that the funds were actively invested and generating returns, while in reality, the money was being diverted to other accounts.
In its order, the court noted that there were sufficient indications of “misappropriation of funds and concealment of the money trail,” making custodial interrogation necessary. Rejecting the defence arguments, the court held that continued custody was crucial for an effective investigation at this stage.
At present, agencies are analysing bank records, digital evidence, investment channels, and linked companies to piece together the full extent of the network. Efforts are also being made to identify other individuals who may have been involved and to determine whether more investors were similarly targeted.
The case once again highlights the risks associated with schemes promising unusually high and assured returns. Experts caution that investors should thoroughly verify the credibility and transparency of any investment opportunity before committing funds.
Further revelations are expected in the coming days as investigators continue to unravel the layers of the alleged fraud and track down additional links in the network.
