Bengaluru Police have registered a case against MobiKwik and Lendbox over allegations of fraud, fund diversion and regulatory violations linked to the “MobiKwik Extra” investment scheme, after investors claimed that their funds were blocked and withdrawal access was restricted without consent.
The FIR was registered at Varthur Police Station following complaints from investors who alleged that the scheme was marketed as a secure investment product offering attractive returns, fixed-deposit-like safety and full liquidity. Investors claimed they were later unable to withdraw their own money, leading to financial distress across different states.
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Investors Allege Blocked Withdrawals
According to the complaints, investor funds were allegedly frozen or made inaccessible without prior notice. The complainants alleged that the scheme had been presented as a liquid investment option where users could withdraw funds at any time.
One complainant, Arjit Singh Benchwar, alleged that he had invested around ₹4 lakh, which was completely frozen. He claimed that more than 630 investors may have been affected, with total funds potentially locked exceeding ₹6 crore.
Another investor, Mayank Day, stated that he had invested approximately ₹3 lakh, of which more than ₹91,000 remains blocked. He also alleged that over 420 investors across the country could have faced losses or restrictions amounting to nearly ₹5.93 crore under the same investment structure.
Financial Records Under Police Scrutiny
Police sources said preliminary examination of financial documents and transaction records has revealed several inconsistencies. Investigators noted that multiple lending and investment-linked accounts associated with the scheme had either become inactive or defaulted.
Authorities are now tracing the flow of money to determine whether investor funds were routed into unrelated accounts or diverted for other financial activities. Bank account details linked to the companies are being examined, and steps have been initiated to freeze suspicious transactions wherever required.
The FIR has been registered under relevant provisions of the Bharatiya Nyaya Sanhita and the Information Technology Act, covering allegations of cheating, criminal breach of trust and misappropriation of funds.
Forensic Audit to Track Fund Flow
Officials said a detailed forensic audit of financial transactions is underway. Investigators are examining digital logs, transaction trails and financial records to assess the full scale of the alleged irregularities.
Cyber and financial crime experts said such schemes often attract investors by promising high returns and liquidity, but later impose withdrawal restrictions after significant funds are collected. They noted that mobile-based investment products have increasingly come under scrutiny in alleged digital fraud patterns.
Police believe the case may not be limited to Bengaluru, as investors from multiple states could be affected. Authorities are also checking whether similar complaints have been filed elsewhere and whether any wider network of intermediaries was involved. Further action will depend on evidence gathered during the ongoing investigation.
