Lucknow | In a major action against economic offences, the Economic Offences Wing (EOW) of Uttar Pradesh Police has achieved a significant breakthrough in a large-scale real estate investment fraud case. The agency has arrested a key director in an alleged ₹100 crore Ponzi scheme, while five other accused connected to the case continue to remain absconding.
The arrested accused has been identified as 50-year-old Mahipal Singh, a resident of Chhatikara village in Mathura district. According to officials, Singh was taken into custody on June 6 during a statewide crackdown on economic offenders. He had been evading arrest for several months and was named in Investigation No. 44/2023 and Case Crime No. 03/2023 registered at the EOW Kanpur unit.
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Officials said the accused has been booked under multiple sections of the Indian Penal Code, including criminal breach of trust, forgery, use of forged documents, and criminal conspiracy. Investigators described the case as part of a well-planned financial fraud network operating across multiple districts.
Fake investment scheme spread across multiple districts
During the investigation, it emerged that the alleged fraud was being operated through a company named ‘Karmabhoomi Real Estate Company Limited’, which was registered with the Registrar of Companies in Kanpur. The company reportedly ran investment schemes between 2011 and 2015 across districts including Mathura, Kanpur, Bijnor, Moradabad, Shahjahanpur, and Lakhimpur Kheri.
According to allegations, the company lured investors by promising residential plots and flats along with unusually high returns, including claims of doubling investments within a short period. A large number of small and middle-income investors were reportedly trapped in these schemes.
₹100 crore estimated loss to investors
Investigators estimate that nearly ₹100 crore was collected from investors through the fraudulent scheme. However, the company allegedly failed to deliver either the promised properties or refund the invested money, leaving hundreds of investors in financial distress.
EOW officials said preliminary findings suggest that the directors used forged documents, misleading advertisements, and false assurances to gain public trust. Instead of investing the collected funds into real estate projects, the money was allegedly diverted through multiple channels, indicating systematic siphoning of funds.
Offices shut, promoters absconded
The investigation further revealed that after collecting substantial funds from the public, the company suddenly shut down its offices and its promoters disappeared from known locations. This led to widespread complaints from investors across several districts, eventually escalating into a full-scale economic offence investigation.
Officials stated that Mahipal Singh played a key operational role in managing the company’s activities and was actively involved in coordinating with other accused individuals.
Financial trail and asset tracing underway
Authorities confirmed that interrogation of the accused is currently underway, with focus on tracing the financial network linked to the scam. Bank accounts, property records, and transaction details are being thoroughly examined to track the flow of funds.
Investigators are also trying to identify whether additional beneficiaries were involved in the scheme and whether assets purchased through diverted funds can be attached under relevant legal provisions.
Search intensified for remaining accused
The EOW has intensified efforts to locate and arrest the remaining five absconding accused. Officials believe that further arrests are likely as the investigation progresses and more financial evidence comes to light.
The agency has also advised the public to carefully verify the legitimacy of investment schemes, especially those promising unusually high returns without regulatory approval.
A detailed chargesheet in the case is expected to be filed after completion of financial audits and forensic analysis of seized documents and records.
