Hyderabad Investment Fraud: Man Allegedly Cheats 7,400 Investors of Rs 670 Crore by Promising 4% Monthly Returns:

A massive investment fraud of Rs 670 crore has recently been unearthed in Hyderabad. According to the source, the fraud has been orchestrated by a man based in Hyderabad, who once worked as a mason and a petrol pump attendant. About 7400 investors seem to be involved in this fraud.

A person named Nanavath Bhupal Naik had previously built an investment business with a promise to give about 4% in monthly returns. For the purpose of the same, he had collected funds from two companies.

According to the Cyberabad Economic Offences Wing (EOW), three cases are connected with this fraud, and all of these are under investigation. The other two cases involve Shares Bazaar Pvt Ltd (SBPL) and Kisaan Parivar Ltd (KPL). As of now, police have succeeded in tracing approximately Rs 35 lakh in the 70 bank accounts linked to his companies and their directors.

How the Hyderabad Man Orchestrated Fraud?

The accused, Naik, allegedly used his existing network of stock market clients and used online promotions in order to bring investors from there to his businesses.

It has also been identified by the investors that several properties, bank accounts and other assets are linked to the funds collected from the investors.

According to the reports, Shares Bazaar Private Limited was started by Naik in 2020 as a stock trading business. The alleged investor gained faster progress after 2022-23, when several investors were promised by the accused to receive monthly returns of about 4% if they made their investment in his business.

However, during the investigation, it was found that Naik did not have any authority to collect funds from the public. Naik had allegedly collected money from new investors to pay returns to the earlier ones.