A case of alleged investment fraud involving ₹11.3 million has surfaced in Gujarat’s Morbi district, where a man has accused his relative of inducing him to invest in the purchase of scrap from a defunct factory by promising him a profitable business partnership. According to the complaint, the accused neither provided the promised partnership nor returned the invested amount. The complainant has further alleged that he was threatened with death after demanding the return of his money. Police have registered a case and initiated an investigation.
According to the complaint, Sanjaybhai Ambarambhai Sanandiya, 50, a resident of Alap Park in Morbi, filed a police complaint against his relative, Gaurav Jayantilal Dadhaniya. He stated that after the paper mill in which he had been a partner shut down, he was searching for a new business opportunity. During this period, the accused allegedly approached him with what was presented as a highly profitable investment proposal.
The complaint alleges that the accused claimed to have entered into an agreement worth approximately ₹87.1 million to purchase the entire scrap inventory of a closed factory belonging to Radheshyam Agro Private Limited in Amreli. He allegedly assured the complainant that the venture would generate substantial profits and asked him to invest around ₹12.5 million, adding that the amount could be paid in instalments rather than as a lump sum. Trusting the accused and the documents shown to him, the complainant allegedly transferred a total of ₹11.3 million in multiple payments.
According to the complaint, the complainant later became suspicious while visiting the closed factory premises in Amreli during one of the financial transactions. He then sought detailed accounts of the investment and clarification regarding his share in the proposed partnership. It is alleged that the accused assured him that if he no longer wished to remain in the venture, the entire investment would be returned along with interest on the amount that had already been utilised.
However, the complaint states that when the complainant later met the accused personally to recover his money, the accused allegedly refused to return any amount. The complainant further alleged that the accused warned him against raising the issue again and threatened him with dire consequences, including death, if he continued demanding repayment.
Following the incident, the complainant approached the police. After a preliminary inquiry, Morbi A Division Police registered a case against the accused under relevant provisions related to cheating, criminal breach of trust and criminal intimidation. Investigators are now examining whether the proposed investment scheme actually existed, whether the documents presented to the complainant were genuine and how the invested funds were utilised.
Police are scrutinising financial transactions, bank records, contractual documents and all monetary dealings between the two parties as part of the investigation. Officials said every aspect of the case is being verified before further legal action is taken. Investigators are also examining whether any additional individuals were involved in the alleged fraud.
Financial experts advise that investors should independently verify ownership records, contracts, financial statements and all business claims before committing substantial funds to any investment or partnership proposal. They caution that relying solely on personal relationships or family connections without proper due diligence can expose investors to significant financial risks. Police have also urged the public to thoroughly verify investment offers and report any suspicious financial schemes to the appropriate authorities.
