New Delhi. An alleged investment fraud involving 21 investors and more than ₹3.78 crore has come to light after investors were allegedly lured with the promise of monthly returns exceeding 10% for 25 months. The Economic Offences Wing has arrested an accused in connection with the case. The accused allegedly initially paid returns to gain the investors’ confidence but stopped making payments after collecting a substantial amount. Investors were allegedly left without either the promised returns or their principal amount.
According to the complaint filed with the Economic Offences Wing, investors were encouraged to invest money online in various schemes operated by the company. They were allegedly told that their investments would generate monthly returns of more than 10% for around 25 months. Relying on the promise of high returns, 21 investors invested more than ₹3.78 crore in different instalments.
Proposal for Conducting Cyber Crisis Drill, Tabletop Exercise (TTEx) & CCMP Readiness Exercise
According to the investigation, the investors were initially paid some returns, which helped establish confidence in the investment scheme. They were subsequently encouraged to reinvest the returns they received. They were also allegedly persuaded to bring their acquaintances and other people into the investment scheme. As a result, the number of investors and the amount collected allegedly continued to increase.
The complainants alleged that payments were suddenly stopped after a substantial amount of money had been collected. When investors demanded the return of their principal and promised returns, they allegedly did not receive satisfactory responses. Payments were eventually discontinued, and people associated with the accused allegedly stopped maintaining contact with the investors. The investors subsequently approached the Economic Offences Wing after failing to recover their money.
During the preliminary investigation, the police examined the manner in which money was collected from investors, transactions linked to the company and the role of those involved. The investigation indicated that investors were allegedly persuaded to put money into various schemes through a planned process. The initial returns were allegedly used to gain their confidence, after which they were encouraged to invest larger amounts and bring in new investors.
After the case was registered, the accused filed an anticipatory bail application seeking protection from arrest. The court rejected the plea, following which the Economic Offences Wing arrested him. The investigating agency is also examining the role of other people allegedly involved in the case.
The investigation has further revealed that the arrested accused is originally from Kanpur and has a law degree. He had been associated with the company for around six years. Investigators are now trying to determine how many investors were approached through the company’s schemes and the total volume of financial transactions involved.
The police are also examining the relevant bank accounts and financial transactions. Investigators are trying to establish where the money collected from investors was transferred and how it was subsequently used. They are also examining whether any property was purchased with the allegedly defrauded funds or whether the money was transferred to other accounts. Further action will be taken based on the findings of the investigation and the role of other people who may emerge in the case.
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.
Follow for daily updates on cybercrime, corporate fraud, DFIR, hacking, investigations, and digital forensics
