Mumbai, July 4 (IANS) The Economic Offences Department (EOD) of the Mumbai Police has arrested a man accused of operating an alleged Ponzi scheme that cheated 42 investors of nearly Rs 30.26 crore by promising lucrative returns through a stock market investment platform, officials said on Saturday.

According to the investigators, the accused allegedly induced investors to invest through the Investok app by assuring monthly returns ranging from two to five per cent on stock market investments.

The authorities alleged that the scheme functioned as an unauthorised deposit operation, resulting in substantial financial losses for dozens of investors.

Officials said that a case has been registered against the accused under the relevant provisions of law, and the investigation is being carried out by the Economic Offences Department in Mumbai.

Investigators also said that before the registration of the case, the accused had remained absconding for a considerable period, frequently changing his identity through aliases and shifting locations in an attempt to evade law enforcement agencies.

“EOD officers from Cell-5 tracked him (the accused) through technical leads and intelligence to Dumas at Surat in Gujarat. A team led by Senior Superintendent of Police (SSP) Shrikant Dhumal (Investigation Officer), with SSP Umesh Shinde, S.F. Deshpande and P.H. Thakur, and assistance from local police, arrested the accused and seized about Rs 1.65 crore from him,” officials added.

The authorities added that the operation was conducted under the supervision and guidance of Senior Police Inspector Ganesh Pawar.

Issuing an advisory to the public, officials cautioned investors against falling prey to Ponzi schemes and other fraudulent investment plans that promise unusually high or guaranteed returns.

“The public is warned against Ponzi schemes promising high returns. Investors should verify scheme credibility, legal registration and RBI permissions before investing. Victims of this scheme are asked to contact the Economic Crimes Department in Mumbai, with relevant investment documents,” the officials said.

The investigation is continuing, and the Economic Offences Department is examining the financial trail to identify additional victims and uncover the full extent of the network.

–IANS

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