HYDERABAD: Investigation into a massive financial fraud amounting to Rs 903 crore, registered with the Hyderabad police in 2022, has apparently made no headway even after a year even as one of the key accused, a Taiwan national, who was assisting the alleged masterminds from China, managed to flee after being granted bail.
The case came to light in October 2022 when the Hyderabad Cybercrime Station (CCS) sleuths registered a complaint regarding a financial scam. The complainant reported a loss of Rs 1.6 lakh after investing in an application called “Loxam”. Investigating the complaint, the police arrested 11 persons, including a Chinese national named Lec alias Li Zhongjun and a Taiwanese national named Chu Chun-yu.
The investigation unveiled a complex web of financial transactions, with funds being routed through various bank accounts. Former Cybercrime ACP KVM Prasad explained: “The amounts were transferred to virtual accounts outside the conventional banking system. Subsequently, the money was channelled through two Asset Management Companies (AMCs) -- Ranjan Money Corp and KDS Fortex Pvt Ltd -- which converted ill-gotten rupees into dollars. These dollars were then received by individuals named Sunny and Sahil, who, in collaboration with two other fraudsters based in Hyderabad, operated from Dubai.”
The culprits were discovered to be operating under the directives of two Chinese nationals, Pei and Human Zhuan. Despite the arrests, progress in the case has been sluggish. The delay in obtaining a FSL report, pending for 11 months, has hindered the investigation.
Meantime, Taiwan national Chu Chun-yu, who had obtained bail, was released and fled to China. A source said, “The FSL report is already taking an extended period, and the case remains under investigation due to this delay. Chu Chun-yu’s escape will undoubtedly have a profound impact.”When asked about the ED’s involvement, the officer noted that the ED had not taken up the case, despite having more extensive resources.