Alappuzha. Kerala coordinator P Pradeep Kumar has been arrested in an alleged ₹1,000 crore investment fraud in which investors were reportedly lured with claims of a major weapons manufacturing contract from the US Department of Defence.
The accused allegedly promised investors a share in a ₹5,000 crore sub-contract and a 25% profit for an investment of ₹1 crore. Pradeep Kumar was arrested after a complainant spotted him at a hotel near Alappuzha.
Pradeep Kumar, a native of Parippally in Kollam, was booked following a complaint by AM Muneer, a resident of Varkala. Muneer alleged that around ₹70 lakh had been taken from him in the name of investment. At around 4 pm on Sunday, Muneer spotted Pradeep Kumar at a hotel near Cherthala railway station. After identifying him, Muneer, with the help of local residents, stopped him and informed the police.
The Cherthala police reached the spot and took Pradeep Kumar into custody. He was later handed over to the Varkala police, who recorded his arrest after questioning. Investigators are now questioning him about the alleged investment scheme, the company’s activities and the movement of funds.
According to Muneer’s statement, Pradeep Kumar and other accused allegedly claimed that the company had secured major contracts from the US Department of Defence for weapons manufacturing. Investors were allegedly told that an investment of ₹1 crore could help secure a share in a ₹5,000 crore sub-contract and generate a 25% profit. The promise of a major government contract and substantial returns was allegedly used to persuade investors to put in money.
Proposal for Conducting Cyber Crisis Drill, Tabletop Exercise (TTEx) & CCMP Readiness Exercise
Temple project also allegedly used as a lure
Muneer also alleged that he was promised a partnership in the proposed ₹350 crore Shivapuri Temple construction project in Varkala. He claimed that he was persuaded to invest money on the basis of this proposal as well. Police are now investigating the authenticity of the claims related to the temple project and the alleged US defence contract, along with how the money collected from investors was used.
Several people have been named in the case, including VPVV Techno Constructions chairman and alleged mastermind Venkitta Venkit, the company’s Kerala coordinator GS Biju, alleged fraud mastermind Dr Saab and Yelathi Padmaraj Gopal. Venkitta Venkit was arrested by Delhi Police earlier this month.
Company directors Hitesh Kumar and Rahul Rajeev Nair, a native of Koothattukulam in Ernakulam, are currently out on bail. The investigation has also found that Venkit, Pradeep Kumar and another coordinator, Vinod Warrier, formed the VPVV company using the initials of their names.
Investigation widened
Following Pradeep Kumar’s arrest, investigators are focusing on the alleged investment network and the flow of funds. They are trying to determine how many people invested money under the scheme, which bank accounts received the funds and where the alleged contracts and other documents shown to investors were prepared.
Investigators are also examining whether the claim of securing a contract from the US Department of Defence was based on any genuine business agreement or was allegedly created to gain investors’ confidence. The financial links between the accused and potential other victims are also being examined.
Investigators expect the arrests and examination of documents to provide further information about the alleged investment network. They are also trying to determine how the money collected from investors was subsequently transferred and how many other people may have been involved in the alleged fraud.
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