A case involving an alleged ₹2.60 crore (approximately US$310,000) investment fraud has surfaced in Karnataka’s Belagavi district, where two individuals and two investment firms have been booked for allegedly deceiving investors by promising attractive monthly returns. Based on a complaint filed with Shahapur Police, authorities have registered a fraud case, alleging that the accused collected large sums of money from investors by assuring them of fixed monthly returns but later failed to repay either the promised profits or the principal amount.
According to the police complaint, complainant Manjunath Divakar Raibagi, a resident of Vadgaon, alleged that Vinayak Mahadev Bhandare and Amol Patil established two entities, Sagar Stock Hub and Sagar Saptahik Varshik Fund, in 2022. Through these firms, they allegedly encouraged members of the public to invest by promising regular monthly returns on their deposits.
The complaint states that the accused claimed investors’ money would be invested in the stock market, real estate, and gold, generating sufficient profits to provide a monthly return of 1.75%. Attracted by the promise of consistent earnings, numerous individuals reportedly invested their savings in the schemes.
The complainant further alleged that the two entities accepted public deposits without complying with the regulatory requirements of the Reserve Bank of India (RBI) and the Securities and Exchange Board of India (SEBI). According to the complaint, the accused collected a total of ₹2,60,60,997 from multiple investors through these allegedly unauthorised investment schemes.
It has also been alleged that investments continued to be collected between 2022 and March 2025, but investors did not receive the promised monthly returns. When they later demanded repayment of their principal and accrued returns, the accused allegedly refused, claiming that they had suffered substantial losses in the stock market and were therefore unable to return the money.
The complainant has alleged that the case goes beyond ordinary investment losses and represents a deliberate scheme to collect money from investors through false promises of high and assured returns. According to the complaint, the accused gained the trust of numerous investors, collected substantial funds, and subsequently failed to honour their financial commitments.
Considering the seriousness of the allegations, Shahapur Police have registered a criminal case against both accused and the two firms under relevant provisions relating to cheating and fraud. Investigators are now examining investment records, bank accounts, financial transactions, and documents related to the operation of the firms to determine how the collected funds were utilised.
Authorities are also investigating whether the alleged investment schemes were operated legally or whether public deposits were accepted without the necessary regulatory approvals and licences. If the investigation establishes that investors were intentionally misled and funds were mobilised unlawfully, additional legal provisions may be invoked during the course of the investigation.
The investigation is currently underway, and police may appeal to other potential victims to come forward with information. Officials said further legal action will be based on the examination of financial records, banking transactions, and documentary evidence. They have also advised the public to verify the regulatory registration, licensing status, and legal credentials of any investment entity before investing money in schemes promising unusually high or guaranteed returns.
