Police are investigating an alleged ₹5.25 crore online investment fraud linked to Lavish Chaudhary, alias Nawab, after an FIR was registered nearly 74 days after the complainants first approached the authorities.
The case concerns the BotBro/BotAlpha investment network, which allegedly promised investors returns several times higher than their original deposits. Investigators are examining bank accounts, local agents and the movement of funds to determine who collected the money and where it ultimately went.
The fresh investigation is significant because Chaudhary is already named in wider multi-state investment-fraud and money-laundering probes. However, the Gonda allegations must be examined separately, and the reported ₹5.25 crore cannot be treated as an additional proven loss in those other cases.
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Sixfold Returns Allegedly Promised at Hotel Meetings
According to the complaint, Gonda resident Virendra Prakash Pandey was invited to a hotel meeting on February 5, 2024. He was allegedly introduced to an investment opportunity that promised returns up to six times the amount deposited.
Another meeting was reportedly held at a hotel in Lucknow, where the investment process was explained. Investors were also encouraged to bring relatives and acquaintances into the scheme.
Pandey and co-complainant Sachchidanand Pathak, a resident of Bahraich, alleged that approximately ₹25 lakh was collected from them through accounts associated with Money Solution and N Pay Box. Around ₹5 crore more was allegedly collected from their relatives and acquaintances.
The complaint names Chaudhary and several alleged local associates, including Saryu Prasad Mishra, Rajat Maurya, Brijesh Singh and Sanjay Jaiswal. The supplied draft contains some differing names, so the complete accused list should be checked against the FIR before publication.
Initially, some investors allegedly received returns. Later, withdrawals stopped and they were told that the company had closed. The complainants say their principal and promised profits were not returned.
Complaint Filed in June, FIR Registered After 74 Days
The timeline of police action has become an important part of the case.
Pandey submitted a complaint during a public grievance hearing before the then superintendent of police, Vineet Jaiswal, on June 17, 2026. The complaint sought action against Chaudhary and others.
The SP reportedly directed Nagar Kotwali police to take action, but the FIR was not registered immediately. Following a review of pending public complaints, police registered the case approximately 74 days later, on August 30.
On September 6, investigating officer Nitin Upadhyay recorded Pandey’s statement. Police are now collecting transaction documents and examining the alleged network.
The complainants have requested scrutiny of the bank accounts involved, a forensic audit of the transactions and an investigation into the wider group.
A forensic financial audit means examining accounts, payment records and supporting documents to reconstruct how money moved. It can help identify whether funds were used for genuine business activity, transferred to other entities or withdrawn by individuals.
How the Alleged Investment Scheme Built Trust
The Gonda complaint describes a pattern commonly associated with high-return investment fraud.
Prospective investors were allegedly promised unusually large profits and encouraged to introduce other people. Early payments helped create confidence that the scheme was functioning.
When a victim receives an initial return, the investment can appear legitimate. That confidence may lead them to deposit larger sums or persuade relatives to participate.
The risk is that the displayed returns may not come from actual trading or business profits.
In September 2025, the Enforcement Directorate described the wider QFX, YFX, BotBro and BotAlpha network as an alleged pyramid-style fraud. The agency said investors were promised monthly returns of five to six per cent through supposedly automated forex trading.
According to the ED, one arrested senior agent stated that no genuine forex trading had taken place on the platform. Investor dashboards allegedly showed notional balances, while newer collections were used to pay earlier investors.
Those findings relate to the wider ED investigation. Police must still establish whether the same mechanism was used for every transaction alleged in the Gonda FIR.
What Is a Ponzi Scheme and Why Do Early Profits Matter?
A Ponzi scheme is an arrangement in which money from newer investors is used to pay returns to earlier investors, rather than profits being generated from a genuine underlying business.
It can appear successful while fresh money continues coming in. Once new deposits slow down or too many investors request withdrawals, the system may become unable to meet its promises.
A pyramid-style scheme also relies heavily on recruitment, encouraging existing participants to bring in new investors.
The distinction matters because a high-return promise alone does not prove a Ponzi fraud. Investigators need evidence showing how deposits were used and whether genuine income existed.
The Gonda investigation will therefore have to establish whether investors’ funds were actually deployed in trading or whether the promised returns depended on money collected from other participants.
Wider ₹3,200 Crore Probe and Dubai Connection
Chaudhary, also known as Nawab, has been named by the ED as an alleged Dubai-based mastermind in the wider QFX/BotBro investigation.
In September 2025, the ED arrested alleged agent Navab Hassan. The agency said Hassan had built a network of more than 10,000 investors and had collected money through payment aggregators and later USDT cryptocurrency.
The ED alleged that proceeds were transferred to the UAE for property purchases and luxury expenditure. It also reported freezing ₹391 crore in 185 bank accounts linked to shell or dummy companies during earlier searches.
Separately, Madhya Pradesh STF investigations have referred to transactions worth approximately ₹3,200 crore across accounts associated with the alleged network.
That is a broader investigative figure, not a judicially established loss amount for the Gonda case.
In October 2025, reporting confirmed that Interpol had issued a Blue Notice against Chaudhary following a request from the Madhya Pradesh STF. A Blue Notice is used to gather information about a person’s identity, location or activities. It is different from a Red Notice, which seeks the location and provisional arrest of a wanted person.
Police Now Face the Task of Tracing the Money
The immediate focus in Gonda is the domestic financial trail.
Investigators are examining which accounts received the alleged ₹5.25 crore, whether local agents retained commissions and whether funds were transferred to other companies or overseas.
Police have said it is too early to conclude whether the Gonda operation was directly controlled from Dubai. Such a link would require evidence from communications, financial records or instructions exchanged with people abroad.
No fresh arrest in the Gonda case has been confirmed in the available reporting.
The allegations against Chaudhary and the other accused remain subject to investigation and judicial proceedings.
What this means for you: Be wary of investment schemes promising several times your money or fixed monthly returns that appear unusually high. Never treat early payouts, luxury trips or a friend’s recommendation as proof of legitimacy. Preserve transaction records and report suspected online financial fraud immediately through 1930 or cybercrime.gov.in.
The420 Insight: The 74-day delay in registering the FIR raises a separate accountability question alongside the alleged fraud. Investigators now need to establish whether local agents were simply collecting investments or actively directing money into a wider network. The strongest evidence will come from account records, payment aggregators and communications linking the Gonda operators to the alleged Dubai-based leadership. The case also shows why early payouts can be more persuasive than advertising: they turn investors themselves into the scheme’s most effective promoters.
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