Police in Thane have registered a case against six directors of a private investment firm for allegedly cheating 68 investors of ₹7.09 crore after promising high returns on their investments.
According to officials, the alleged fraud was carried out over several years through multiple corporate entities and came to light after a Mumbai-based vada pav vendor approached police over money he had invested.
Investment Began With Promise of Monthly Returns
The complainant, a vada pav vendor from Malad, was introduced in 2018 through an acquaintance to one of the accused, who was then operating a share-broking company. He initially deposited ₹5,000 with the company and later invested ₹3 lakh after allegedly being promised a monthly return of 5 per cent.
The arrangement was expected to generate ₹1.05 lakh in interest over six months. Several other people also invested after receiving similar assurances of high returns.
When investors later visited the company’s Kandivali office to collect interest payments, staff allegedly asked them to wait for 45 days. Police said the investors were also pressured to sign affidavits stating that the money they had provided was a personal loan to the accused.
The Kandivali branch was subsequently shut, after which investors were directed to the firm’s head office in Bhandup. There, they were allegedly given cancelled cheques and online withdrawal receipts. They later received an email informing them that the firm’s operations had been suspended for six months.
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Previous Investment Fraud Case Against Accused
According to police, the matter also has a previous case involving the accused who was running the share-broking company. Bhandup police arrested him in May 2023 in connection with an investment fraud. He subsequently secured bail and later issued a video message announcing a new corporate initiative.
The Malad vendor later met the accused in Dombivli, where he was allegedly told that making another payment would help recover his locked investment of ₹5.37 lakh.
The accused reportedly offered him a 22-month return plan and asked him to pay another ₹80,550. The vendor made the additional payment but allegedly did not receive the promised returns.
When the vendor and other investors later approached the directors of the new corporate firm seeking the return of their capital, they allegedly received evasive responses.
Complaint Reveals Wider Scale of Alleged Fraud
A complaint filed by the vendor and other investors with Ramnagar police brought the wider scale of the alleged fraud to light.
Police said the complaint indicated that 68 investors had collectively lost ₹7.09 crore. A case has been registered against six directors of the private investment firm, and police are investigating the allegations.
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