BHOPAL: Madhya Pradesh police on Wednesday busted a gang in Balaghat district that was allegedly duping people through a ponzi scheme promising ‘double’ return on investments within a short span. Seven people were arrested and a sum of Rs 10 crore was confiscated from their possession.
The accused targeted innocent tribals hailing from remote areas, claiming that the scheme was meant specially for them.
Balaghat police told media that action was taken following multiple complaints received through CM Helpline and other sources.
Most complaints were from the Lanji-Kirnapur area where people said that a group was luring them with an offer of doubling their money. Hundreds of people fell into their traps.
Sources informed that locals made huge withdrawals from their savings accounts after being lured to get their money doubled by ponzi scheme operators.
Many of them who had initially joined this group were paid handsome returns to earn the faith of investors, said sources. A special team was formed to investigate the matter.
Initial investigations revealed that the accused were collecting money without any valid permits. They had recruited several agents on high salaries and incentives for collection. After confirmation searches were carried out at various places and seizures were done.
Police recovered Rs 10 crore in cash, 16 mobiles and three vehicles from the possession of those arrested. Three of those named in the case are on the run.
Those arrested have been identified as Somendra Kankrayane, Pradeep Kankaryane, Lalit Vaishnav, Rahul, Ramchandra - from Lanji, Tamesh, Rakesh Mansure, Ajay Tidke and Manoj Sonekar from Kirnapur among others.
They have been charged under various sections for the fraud.
