New Delhi | The Economic Offences Wing (EOW) of the Delhi Police has uncovered an alleged pyramid and money circulation scheme and arrested a man accused of defrauding people under the guise of an NGO named Khwaja Garib Nawaz (KGN). According to the police, the accused, along with his associates, allegedly cheated economically weaker individuals of around ₹11 lakh by luring them into various investment schemes.
The investigation began after a complaint was filed by a resident of Madanpur Khadar. The complainant alleged that the KGN NGO encouraged poor and financially vulnerable individuals to deposit money under different schemes by promising benefits such as sewing machines, refrigerators, televisions, washing machines, other household appliances, educational assistance, marriage support, and cash incentives.
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During the investigation, police found that the alleged operation functioned as a pyramid and money circulation scheme. Members were reportedly promised benefits only if they recruited new participants, with funds collected from new investors allegedly being used to sustain and expand the scheme.
The EOW has arrested Mohammad Nazim (35), a resident of Rampur district in Uttar Pradesh, in connection with the case. According to investigators, Nazim and his associates initially delivered promised goods to a few participants to gain public confidence. They later distributed pamphlets and membership forms to attract a larger number of investors.
Police said that after collecting substantial amounts of money from residents of Madanpur Khadar and nearby areas, the accused and his associates allegedly shut down the office and absconded. Following the complaint, the EOW launched an investigation that led to Nazim’s arrest.
Investigating agencies are now examining the involvement of other members of the alleged network, tracing the flow of funds, and determining the total amount collected through the scheme. Authorities are also investigating how many people were persuaded to invest and how the collected money was utilised.
Police have advised the public to remain cautious of any scheme that promises goods, cash incentives, or unusually high returns in exchange for advance payments or the recruitment of new members. They have urged people to verify the legitimacy and registration of any organisation before investing and to immediately report any suspicious activity to law enforcement authorities.
About the author — Suvedita Nath is a science student with a growing interest in cybercrime and digital safety. She writes on online activity, cyber threats, and technology-driven risks. Her work focuses on clarity, accuracy, and public awareness.
