A case of cheating worth ₹9.27 crore has surfaced in a scam involving investment in red sandalwood farming. The accused allegedly lured a businessman by claiming that the money was being invested in a government-backed project and promised returns of ₹700 crore in ten years. The court has ordered registration of a case against four persons after police initially failed to act on the complaint.
Businessman Lured into Sandalwood Scheme
The businessman, Heman Kumar Rai, a resident of South City in the PGI police station area of Lucknow, alleged that some people who frequently visited his office trapped him by offering investment opportunities in sandalwood farming.
According to Rai, he was introduced in December 2022 to J. Pullaiah, Nagireddy, P. Lakshmi Narayana and P. Maheshwar, all residents of Kurnool district in Andhra Pradesh. The accused claimed that a government project for red sandalwood cultivation was underway in Prakasam district of Andhra Pradesh and that it offered lucrative investment opportunities.
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Promises of ₹700 Crore Returns and Fake Documents
The accused convinced the businessman to initially invest about ₹6 crore in the project. During the discussions, they assured him that the investment would multiply several times after ten years, promising an overall return of nearly ₹700 crore. To gain his trust, they also showed several documents, including site maps of land, project cost estimates, layout plans, and papers allegedly issued by some government departments.
₹9.27 Crore Siphoned in Installments
The victim stated that the accused transferred money from him in several installments. Between June 14, 2023, and January 2026, a total of ₹9.27 crore was taken. After receiving the money, the accused started delaying repayment when the businessman demanded his investment back.
Threats, Blackmail and Court-Ordered FIR
It is also alleged that the victim was threatened and pressured when he asked for his money. According to the complaint, the accused threatened to file a false rape allegation against him if he insisted on repayment. The businessman further claimed that the accused blackmailed him and forcibly took a car worth ₹20 lakh.
Five people have been named in the case, including a married couple. The victim had earlier approached the local police station with a complaint, but no report was registered against the accused. Following this, he approached the court, which directed the concerned police station to register a case under charges of fraud and related offences.
Police have started a detailed investigation into the role of the accused, bank transactions, and money transfers made in the name of investment. Officials said preliminary inquiry suggests that the accused used fake and misleading information to attract investors under the project’s name.
Investigators are also checking whether the gang cheated other people using a similar modus operandi. Financial transaction sources and possible network links are also being examined.
After the scam came to light, police advised people to verify the legality of any investment project before putting in money and remain cautious of promises of unusually high returns. Authorities stressed that vigilance is the best protection against economic and cyber frauds.
About the author – Rehan Khan is a law student and legal journalist with a keen interest in cybercrime, digital fraud, and emerging technology laws. He writes on the intersection of law, cybersecurity, and online safety, focusing on developments that impact individuals and institutions in India.
