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Cyberabad police are investigating two Hyderabad-based companies over an alleged ₹670 crore investment fraud involving nearly 7,400 investors across India. The investigation began with a complaint from a retired Navy Commodore alleging a ₹4.51 crore loss and has expanded into several cases.
More than 500 investors have approached the Economic Offences Wing (EOW), reporting losses exceeding ₹70 crore.
Which Companies Are Under Investigation?
The EOW is investigating Shares Bazaar Pvt Ltd (SBPL) and Kisaan Parivaar Ltd (KPL), along with their directors and senior executives.
Police allege that the companies attracted investors by promising returns ranging from 18% to 48%. SBPL was presented as a SEBI-registered company specialising in algorithm-based stock trading. KPL was promoted as an organic farming venture that pooled land from marginal farmers.
How Were Investors Attracted?
According to police, the companies began collecting deposits in 2020, with investments increasing sharply during the 2022-23 and 2023-24 financial years.
Initially, investors allegedly received interest payments, encouraging further deposits and building confidence in the schemes.
However, payments of interest and repayment of principal reportedly stopped in October 2025. At least 12 former armed forces personnel from different states are among the identified victims.
What Triggered the Main Investigation?
The principal cheating case was registered on June 15 following a complaint from a 58-year-old retired Navy Commodore residing in Mokila, Hyderabad. He alleged that he and 10 others had been cheated of ₹4.51 crore.
The complaint named alleged promoter Nanavath Bhupal Naik and several relatives and associates connected with the companies. Cyberabad police have registered three criminal cases involving the alleged investment schemes.
Who Has Been Arrested?
Five suspects have been arrested in the main case, including Bhupal Naik, his uncle Babu Naik, his brother and police constable Santosh Naik, and associates Shankar Rao and Rambabu.
Investigators have identified 45 properties allegedly linked to the accused across Mahabubabad, Wanaparthy and Sangareddy, including approximately 140 acres of agricultural land.
Additional properties identified for attachment include a villa and office buildings in Hyderabad’s Kondapur area.
What Other Complaints Have Emerged?
A second case was registered on July 31 after a retired Air Force Wing Commander from Secunderabad alleged that his family lost more than ₹48 lakh through investments in KPL. Another complaint involving an alleged ₹50 lakh loss through SBPL was subsequently transferred from Gachibowli to the EOW.
Police said Bhupal Naik had also been arrested in Punjab and Gujarat in connection with similar cases. The investigation continues into the companies’ financial dealings and properties allegedly connected with the accused.
