A major investment fraud has surfaced from Rajkot, Gujarat, where scammers allegedly duped investors of over ₹1.48 crore by promising high returns through a Dubai-based trading company. Two accused have been arrested in connection with the case, while the main accused along with another accomplice remains absconding. Investigators believe this could be part of a larger, well-organised financial racket.
According to officials, the arrested individuals have been identified as Gaurang Khunt and Arvind Khunt. They were taken into custody from different locations and are currently being interrogated in custody. Meanwhile, the prime accused Sagar Khunt and his mother Jyotsnaben Khunt are on the run, and search operations are underway to trace them.
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How the Scam Unfolded
The case came to light following a complaint filed by Virendrasinh, who revealed that he had been acquainted with Sagar Khunt for nearly a decade. Leveraging this long-standing trust, the accused allegedly convinced him in 2023 to invest in a Dubai-based entity named “Nisha Investment Consultants – FZCO,” claiming it to be a profitable trading firm.
The accused promised lucrative monthly returns ranging between 4% and 5%, presenting the scheme as a safe and high-yield investment opportunity. To further build credibility, he reportedly claimed that his family members based in Rajkot were managing the firm’s financial operations locally, giving the impression of transparency and security.
Trusting these assurances, the complainant invested a total of ₹56.43 lakh in multiple instalments. Initially, the accused maintained regular payouts to sustain confidence. Until March 2025, the complainant received monthly returns between 4% and 4.5%, amounting to approximately ₹11.53 lakh in total.
However, the payments abruptly stopped thereafter, and repeated attempts to contact the accused yielded evasive responses. By the time the complainant realised that he had been defrauded, a substantial portion of his investment had already been siphoned off.
Scale of the Fraud Revealed
Further investigation revealed that the scam was not limited to a single victim. Several of the complainant’s acquaintances were also persuaded to invest in the same scheme after witnessing consistent returns in its early stages. In total, around ₹1.74 crore was collected from multiple investors.
Out of this, only ₹26.77 lakh was returned to investors, while over ₹1.48 crore remains unpaid. Authorities now suspect that at least 15 individuals have fallen victim to the scheme, though the actual number could be higher as more complaints are expected to emerge.
Investigators are examining bank accounts, financial transactions, and digital trails linked to the accused to uncover the full extent of the fraud. Officials indicated that the total scam amount could exceed ₹5 crore once all victims come forward.
Legal proceedings have been initiated under relevant provisions of the Bharatiya Nyaya Sanhita and other applicable laws. Authorities have assured that efforts are underway to arrest the absconding accused and recover the defrauded money.
Ponzi Scheme Warning for Investors
Financial experts note that this case bears the hallmark features of a classic Ponzi-style scheme. In such frauds, perpetrators initially pay returns using funds from new investors to create an illusion of profitability. Once a substantial amount is collected, payouts are halted, and the operators disappear.
The incident serves as a stark warning for investors against schemes offering unusually high and guaranteed returns. Experts advise individuals to thoroughly verify the legitimacy, registration, and financial credentials of any company before investing.
As the probe progresses, authorities expect more clarity on the network and possible links to similar fraud operations. For now, the Rajkot scam stands as yet another example of how trust, combined with the lure of quick profits, can be exploited to orchestrate large-scale financial fraud.
