Gang of eight arrested in investment fraud

The Cyberabad’s Economic Offences Wing (EOW) has uncovered a massive scam involving ‘12 Wealth Capital Services Pvt. Ltd’, a company accused of deceiving thousands of investors under the guise of lucrative schemes.

The company’s managing director Kalidindi Pavan Kumar was arrested along with Ravula Sathyanarayana, Boddulu Harikrishna, Valluru Bhasker Reddy, Pagadala Ravi Kumar Reddy, Kollati Jyothi, Kuralla Mounika, and Kurkula Lavanya.

They were cheating people by luring them with fraudulent buy-back and gold schemes, leading to the loss of approximately ₹300 crore for nearly 3,600 investors, said the police.

The investigation reveals that the accused used three main schemes to lure unsuspecting investors. “These schemes however were part of an elaborate ruse designed to defraud investors of their deposits. The company failed to keep its promises of monthly interest or final payments, leaving investors without either their returns or their principal investments,” said the police.

The scam came to light following a complaint from Nayani Harikanta, a resident of KPHB, Hyderabad, who fell victim to the schemes and brought the fraudulent activities to light.

In light of this fraud, Cyberabad EOW Police has issued a strong advisory, urging the public to exercise caution regarding unauthorised investment schemes, particularly those involving real estate, and high returns in a short period of time.

Published - November 16, 2024 08:33 pm IST