Bengaluru police register cases against fintech firms over investment scheme
MobiKwik and Lendbox have been accused of diverting funds and blocking investor withdrawals through the 'MobiKwik Xtra' investment scheme.
The cases were registered based on complaints filed by investors (File photo for representative use). The Varthur police in Bengaluru have registered two cases against Gurgaon-based fintech firms Transactree Technologies Pvt Ltd and One MobiKwik Systems Ltd over allegations of cheating and misuse of investor funds through the ‘MobiKwik Xtra’ investment scheme.
According to the police, the cases were registered based on complaints filed by investors who alleged that the companies lured users with promises of fixed-deposit-like returns and easy withdrawals, but later failed to return the invested amounts.
In one complaint filed on May 14, investor Arjeet Singh Benchhor alleged that nearly Rs 4 lakh invested by him through the platform remained blocked and could not be withdrawn. The complaint further alleged that investor funds were diverted and used in violation of Reserve Bank of India (RBI) regulations.
The complainant also referred to a borrower mapping report dated May 5, and lender verification findings, which allegedly revealed that several borrower accounts linked to the scheme had become inactive or defaulted, while investor money remained blocked in accounts associated with the accused entities.
The police said the complaint claims that more than 630 investors across the country may have collectively invested over Rs 6 crore in the scheme. The complainant has sought freezing of the companies’ bank accounts and legal action against those responsible.
In a separate complaint, another investor, Mayank Dey, alleged that he had invested Rs 3 lakh through MobiKwik and Lendbox, of which Rs 91,341 allegedly remains blocked. The complainant alleged that the companies marketed the scheme as a secure, liquid investment product similar to a fixed deposit, but later restricted withdrawals without the investors’ consent.
The second complaint further alleged that over 420 investors nationwide may have exposure exceeding Rs 5.93 crore under the scheme.
Police said they are examining the allegations and verifying financial records linked to the transactions.
Founded in 2009, One MobiKwik Systems Ltd operates as a digital wallet and mobile payments platform offering services such as UPI payments, utility bill payments and money transfers.
Based on the complaints, the Varthur police registered cases under the provisions of the Information Technology Act, as well as under Sections 319(2) and 318(4) of the Bharatiya Nyaya Sanhita (BNS), for cheating and dishonest inducement to deliver property.
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