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Ponzi scheme racket busted in Ahmedabad, three arrested

Ponzi scheme is considered as a fraudulent practise as per the Reserve Bank of India wherein the initial investors of the scheme are paid their interest amount over investment by using the money paid by later stage investors.

By: Express News Service | Ahmedabad | December 17, 2020 4:51:52 am
Mumbai crime branch, former bmc employee held for duping, retired constable held for duping, mumbai woman duped, mumbai crime news, indian express newsAround 2.45 pm, six persons on two scooters arrived at the site and allegedly started arguing with the police.

The Ahmedabad Police Detection of Crime Branch (DCB) on Wednesday arrested three persons and unearthed a ponzi scheme being run for the past three months at Vastrapur in Ahmedabad.

According to police, Akhtar Hussain Khan, a native of Alwar in Rajasthan, Puja Singh, a native of Bhopal in Madhya Pradesh and Sunil Yadav, a native of Bijnor in Uttar Pradesh, have been arrested for allegedly running a ponzi scheme from their office ‘Games for Victory’ private limited in Abhishree Adroit business complex in Vastrapur.

The accused, police said, were using a mobile application called “victory world” wherein customers were encouraged to invest money promising return on investment (ROI) at one per cent rate every day on investment.

Ponzi scheme is considered as a fraudulent practise as per the Reserve Bank of India wherein the initial investors of the scheme are paid their interest amount over investment by using the money paid by later stage investors.

“The accused were running a ponzi scheme for the past three months in which they have had transactions above Rs 30 lakh involving hundreds of customers. They had offered one per cent ROI on daily basis to their investors under various schemes. We have busted the scheme and arrested three persons. The director of the company Ashish Patel is absconding as of now,” said an official of Ahmedabad DCB.

The accused were booked under various IPC sections including 406 (criminal breach of trust), 409 (criminal breach of trust by public servant), and 420 (fraud).

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