Hyderabad: In a major action against cyber-enabled financial fraud, the Economic Offences Wing (EOW) of Cyberabad Commissionerate has arrested Ramavath Madhu for allegedly cheating over 30 investors of nearly ₹6.58 crore through a fake real estate investment scheme operating under the name “Subhakshetra Projects.”
According to police officials, the accused and his associates allegedly ran a well-organized racket by creating a fake corporate structure named Subhakshetra Projects Private Limited. Investors were lured with promises of high returns, plot allotments, and insurance benefits, making the scheme appear legitimate and highly profitable.
Promises Made to Investors
The investment plan reportedly included an initial payout of ₹5 lakh, allotment of a 102-square-yard plot, a guaranteed monthly return of ₹25,000 for 42 months, and an additional insurance cover of ₹5 lakh. To strengthen credibility, the accused claimed that a 16-acre DTCP-approved real estate project was being developed in Damargidda village of Sangareddy district.
Investigators found that an office was being operated in Miyapur, where potential investors were called and persuaded to invest large sums of money. The setup was allegedly used as a front to collect funds under the guise of a legitimate real estate venture.
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Victims Forced Into Loans
Police said several victims fell into the trap and invested substantial amounts after taking bank loans and even pledging gold ornaments. However, subsequent investigation revealed that the claimed land was never fully purchased. No plots were registered in the names of investors, and no promised monthly returns were ever paid.
When investors began demanding refunds, the accused reportedly delayed payments repeatedly, citing financial difficulties and operational issues. After prolonged delays and no repayment, victims approached the Economic Offences Wing, prompting a formal investigation.
Based on the complaint, the EOW registered a case and launched a detailed probe. After collecting sufficient evidence, police arrested Ramavath Madhu. Officials confirmed that further investigation is underway to identify additional individuals involved in the network.
Wider Fraud Network Under Probe
Preliminary findings suggest that the entire scheme was built on fabricated documents, misleading advertisements, and false assurances. The accused allegedly used carefully designed marketing tactics to gain the trust of investors while diverting funds for personal and illegal gains.
Authorities also noted that Ramavath Madhu is already facing another criminal intimidation case, in which a well-known singer-actor has been named as a co-accused. This has further deepened concerns regarding his alleged involvement in multiple fraudulent and criminal activities.
Cybercrime experts have highlighted that such cases are increasingly using psychological manipulation techniques to exploit financial aspirations of common people. Former IPS officer and cybercrime expert Professor Triveni Singh stated that fraudsters commonly rely on “social engineering, fake high-return schemes, and forged documentation to deceive investors and build false credibility.”
Police officials said the case reflects a growing trend of investment frauds where victims are lured with unrealistic returns and guaranteed profits. Such networks often operate through aggressive marketing, fake approvals, and structured financial deception.
The EOW is now tracking the money trail to determine how funds were transferred, where they were diverted, and whether similar schemes are being operated under different names. Banking records and financial transactions linked to the accused are also under scrutiny.
Authorities have urged the public to remain cautious and avoid investing in schemes that promise unusually high or guaranteed returns. Officials emphasized that legitimate investment opportunities never assure fixed monthly profits or risk-free gains.
Investigations are continuing, and officials have indicated that more arrests and major revelations are likely as the probe into the wider network progresses.
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.
