HYDERABAD: Officials from the Economic Offences Wing (EOW) of the Hyderabad police apprehended two persons in connection with an investment fraud amounting to Rs 530 crore, affecting 200 victims who were deceived under the guise of a 6% monthly return scheme.
Joint Commissioner Gajarao Bhupal said that the accused have been identified as Gudhe Rambabu, aged 48, from Vijayawada and Penmetsa Krishnamraju, aged 42, from Bhimavaram, Andhra Pradesh.
Bhupal said, “Initially partners in a chocolate factory in Vijayawada, the duo’s ambition for greater profits led to their involvement in an investment fraud. They founded a business in the fast-moving consumer goods sector and duped 200 victims, including their friends and relatives, collecting Rs 530 crore with the promise of a 6% monthly return on investment.” After initially fulfilling their commitment by providing returns ranging from 6% to 13%, the duo abruptly halted all payments, absconding when questioned by investors in August 2023, he added.
Upon receiving a complaint, a probe was initiated by the EOW, leading to the arrest of the duo in Gachibowli, where they were found in possession of four lakhs in cash and 2.5 kg of gold. Approximately Rs 427 crore was disbursed to victims under the guise of profits. Additionally, Rs 50 crore was allocated for office maintenance and employee expenses, while each accused shared Rs 20 crore each from the misappropriated funds. Moreover, Rs 12 crore was distributed to distributors and gold traders as commissions.
Duped 200 victims including family & friends
They founded a business in the fast moving consumer goods sector and duped 200 victims, including their friends & relatives, collecting Rs 530 crore with the promise of a 6% monthly return