A man has been arrested for allegedly cheating 10 members of a family after collecting more than ₹3 crore in the name of stock market investments and promising them high returns.
The accused, identified as Prakash Sinha, a resident of Amlishwar, allegedly claimed to run a share trading company and persuaded the family to invest their money with him.
Between November 2021 and January 2022, the family members reportedly transferred a total of ₹3,04,50,000 from different bank accounts to accounts linked to the accused. Sinha later returned ₹1,03,60,000, while ₹2,00,90,000 allegedly remained unpaid.
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Family Transferred ₹3.04 Crore for Share Trading
The case came to light after Krishna Kumar Chandrakar, a resident of Prem Sagar Chowk in Baigapara, approached the police.
According to his complaint, Sinha persuaded the family members to invest by promising substantial profits from stock market trading. The claims allegedly convinced 10 members of the family to transfer large amounts of money.
Police said the transactions took place between November 24, 2021, and January 13, 2022. During this period, ₹3.04 crore was transferred through different bank accounts.
Sinha subsequently returned around ₹1.03 crore. The remaining ₹2.00 crore was allegedly not repaid.
The complaint was filed on August 29, nearly four years after the original transactions.
Police Arrest Accused, Examine Money Trail
After receiving the complaint, police began examining the financial transactions and the claims made by Sinha.
Following the inquiry and questioning, police arrested him and seized a mobile phone from his possession.
Investigators are now trying to establish what happened to the money received from the family. A key question is whether the funds were actually invested in the stock market as allegedly promised or were used elsewhere.
Police are examining bank statements, withdrawals and subsequent transfers to trace the movement of the money.
Was There a Genuine Investment Business?
The investigation is also focused on whether the share trading business claimed by Sinha actually existed and whether the investment arrangements offered to the family were genuine.
If investigators establish that the money was collected in the name of stock market investments but was diverted for another purpose, the case could reveal a wider pattern of alleged cheating.
Police are also checking whether Sinha approached other people with similar investment offers. Financial records could help establish whether the family was the only group that allegedly transferred money to him.
The allegations remain subject to investigation, and the financial records will be important in establishing how the money was received and used.
Investment-related frauds often work by exploiting the expectation of quick or unusually high returns. A person may initially build trust by showing apparent profits or returning part of the money, while encouraging investors to continue putting in larger amounts.
Cybercrime expert and former IPS officer Prof. Triveni Singh has advised investors to independently verify the credentials of any individual or company seeking substantial investment funds.
Investors should check the entity’s regulatory status, business credentials and documentation before transferring large sums. Promises of guaranteed or unusually high returns should also be treated as a warning sign.
In the Durg case, police are now questioning the accused to determine where the remaining ₹2,00,90,000 went and whether other investors may also have been approached.
Further action will depend on the findings of the investigation and the financial trail uncovered by police.
What this means for you: Do not hand over large sums to an individual merely because they promise high stock market returns. Verify the person or company independently, check the relevant regulatory credentials and keep a clear record of every investment transaction.
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