A major investment fraud has surfaced in the city’s Roop Nagar area where fake post office passbooks were allegedly used to siphon off nearly ₹9 crore from unsuspecting depositors. Police have arrested 48-year-old Ashish Singhal, who is accused of collecting money from local residents by promising unusually high returns under post office savings schemes and issuing forged documents.
According to investigators, three separate FIRs were registered in January and at least 30 victims have come forward so far. The number is expected to rise as more investors verify their records. Financial transactions, passbooks and receipts are being forensically examined to establish the full money trail.
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Accused’s Exploitation of Trust
The accused gained credibility through his mother, who had been an authorised post office savings agent in the locality for nearly four decades. Owing to her long-standing reputation, small traders, shopkeepers and domestic workers routinely invested through her. After she fell ill in 2018, Singhal took over the operations and allegedly began exploiting that trust to run the fraud.
Mechanics of the Ponzi Scheme
Police said investors were persuaded to reinvest funds from matured schemes into “special high-interest” post office plans. Victims were handed passbooks showing regular entries and balances, which appeared genuine and delayed suspicion for years. In reality, the deposits were never made in official accounts.
Investigations indicate that a substantial portion of the collected money was lost in betting and speculative activities. To keep the scheme afloat, the accused allegedly used fresh deposits to pay returns to earlier investors, creating a Ponzi-like cycle. The fraud came to light when payouts stopped and investors approached authorities.
Ongoing Probe and Warnings
The probe is now focusing on bank accounts, cash flow patterns and the possibility of accomplices. Police are also verifying whether any official credentials or identification linked to the authorised agency were misused to mislead depositors. Records from the post office have been requisitioned to reconcile genuine investments with forged entries.
Experts say such scams thrive on institutional trust. Claims of government-backed schemes, association with an authorised agent and promises of above-market interest often discourage investors from independently verifying deposits. Lack of financial awareness and failure to cross-check entries through official channels further increase vulnerability.
Investigating agencies are assessing the recoverable amount and the scope for partial restitution to victims. The accused remains in custody and questioning is ongoing, while police have urged other potential victims to come forward.
The case underscores the growing risk of fraud conducted in the name of government savings schemes and highlights the need for investors to insist on official receipts, digital entries and direct confirmation from the department before making deposits.
About the author – Ayesha Aayat is a law student and contributor covering cybercrime, online frauds, and digital safety concerns. Her writing aims to raise awareness about evolving cyber threats and legal responses.
