HYDERABAD: The Economic Offences Wing (EOW) of Cyberabad commissionerate has arrested two individuals in connection with an Rs 850 crore Ponzi scheme linked to the Falcon Invoice Discounting Platform.
The accused promised returns between 11% and 12% per annum, with the maturity period between 45 and 180 days.
The police arrested Pavan Kumar Odela, vice-president of Capital Protection Force Pvt Ltd & business head of Falcon Invoice Discounting Platform, and Kavya Nalluri, director of Capital Protection Force Pvt Ltd and Falcon Capital Ventures Pvt Ltd, on February 15. Meanwhile, the primary accused, Amardeep Kumar (MD, Falcon Capital Ventures Pvt Ltd), Aryan Singh (COO) and Yogender Singh (CEO), are absconding.
While over 19 individuals have been named as accused, only two have been arrested while the rest remain at large, an official said.
According to the police, the accused launched a mobile application and website, falsely presenting Falcon Invoice Discounting Platform as a legitimate peer-to-peer invoice discounting service.
They claimed to connect depositors with reputed companies, but in reality, they fabricated vendor profiles and fake deals to create an illusion of authenticity.
Deposits ranging from Rs 25,000 to Rs 9 lakh were collected from investors
Deposit amounts ranging from Rs 25,000 to Rs 9 lakh were collected from investors. A total of Rs 1,700 crore was collected, of which Rs 850 crore was repaid to the investors, while the remaining Rs 850 crore, owed to 6,979 depositors, remains unpaid across India.
“The accused orchestrated a large-scale financial fraud amounting to Rs 850 crore through Falcon Invoice Discounting Platform under Capital Protection Force Pvt Ltd and its associated entities,” said Deputy Commissioner of Police (EOW) K Prasad.
A case has been registered under Sections 316(2), 318(4), 61(2) of Bharatiya Nyaya Sanihta (BNS) and 5 of the Telangana State Protection of Depositors of Financial Establishment Act, 1999.
Operating since 2021, the accused continuously recruited new depositors to pay returns to earlier investors, by creating a Ponzi scheme. Funds collected were diverted into various shell companies.
By January 15, 2025, the scheme collapsed, promised returns were halted, and the office in Hyderabad was shut down, prompting depositors to lodge complaints with the police.
The police further reveal ed that depositors’ funds were misappropriated to establish multiple companies, including a cryptocurrency platform, multi-level marketing schemes, luxury hospitality, private charter services and real estate investments.
The Cyberabad police have urged the public to exercise caution before investing in schemes promising unrealistic returns. Investors are advised to verify the legitimacy of financial firms through regulatory bodies such as SEBI and RBI.