Delhi Police’s Economic Offenses Wing (EOW) arrested the director of a financial firm for allegedly deceiving more than 500 people under the pretext of getting them to invest in schemes and term deposits.
Police identified the accused as Murari Kumar Srivastav and alleged that he escaped with over 3.5 million rupees in investor money.
RK Singh, Additional Police Commissioner (EOW), said Srivastav ran the business with other directors in Paharganj. Police said they interrogated Srivastav, carried out raids and made other arrests.
“They targeted investors in Delhi-NCR and raised over Rs 3.5 crore. The accused promised returns on the investments but shut down the business and fled. We found out that 531 people were deceived by the accused, ”Singh said.
The police initially received complaints from 38 people. Most of them have invested Rs 2 lakh-Rs 10 lakh in the programs. People said they were promised 18% interest on the plans. They were also told that the company is registered with the Reserve Bank of India and licensed by the government.
“The company has been deceiving people for three years. We have not yet received any further complaints and determined the total amount. They were neither registered with the RBI nor authorized, ”Singh said.
After a case was recorded by the EOW, teams were dispatched to arrest the directors. Through technical surveillance, Srivastav was located in Bihar and arrested in the village of Humayunpur.
Srivastav and his associates are said to have raised mostly cash investments to avoid being caught, police said. “After raising over 3.5 million rupees from over 500 investors, he closed the business, sold his house and ran away with other associates,” Singh said.
The directors reportedly received small payments from their investors and kept a passbook and records. Initially, to “attract” more people, the accused returned the money to a few investors and won the trust of many investors who were later deceived, police said.