In coastal Karnataka, authorities are looking into a large network of fake investment schemes that tricked thousands of people with promises of easy money and big prizes.
Widespread Scheme Network Under Investigation
The district police have begun a special investigation to curb fraudulent “lucky scheme” businesses that have been cheating the public across Dakshina Kannada. More than 50 such schemes are reportedly active in the district, including areas like Surathkal, Katipalla, Krishnapura, Ullal, Bantwal and Puttur. Police have been keeping close watch on their activities.
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Krishnapura Case Exposes Multi-Crore Fraud
In an earlier case from the Krishnapura region, four people were arrested for cheating investors, and a case was registered at Surathkal police station. Investigations revealed that transactions worth nearly Rs 15 crore had taken place. The accused are currently in judicial custody. The scope of the fraud demonstrates how these schemes have grown beyond simple neighborhood operations to become sophisticated financial networks targeting thousands of participants across multiple districts.
Police Intensify Monitoring Operations
Law enforcement agencies have significantly stepped up their surveillance of these fraudulent enterprises, recognizing the threat they pose to public trust and individual financial security. The investigation reveals a pattern of similar operations that promise monthly prizes, collect substantial deposits, and then disappear without delivering on their commitments. Police sources indicate that the schemes often target middle-class families and rural communities with limited access to formal investment channels.
Expanding Investigation Promises More Arrests
Police sources said more details are emerging as the probe continues, and further arrests are likely in connection with the racket. The investigation has revealed the interconnected nature of these schemes, with many operators appearing to have connections across different regions of the district. Authorities are working to map the full extent of the network and identify additional perpetrators who may have been involved in similar fraudulent activities.