New Delhi: Delhi police have arrested a man for allegedly deceiving people from their investment through a scheme offered by him who promised a high refund, a senior police official said on Sunday.
The defendant, Murari Kumar Srivastav, was arrested from Humayunpur Village, Sitamin District in Bihar, Supplementary Commissioner of the Police (Wing Economic Violations) said R Singh.
The arrest was made in complaints conducted by 38 people, who accused a company called ‘Progress Producer Company Limited’ and the director cheated them from their money invested in the scheme offered by the company, said Singh.
About 531 victims invested money in this scheme.
The company director was collected around RS 3.5 Crore from investors who were cheated and escaped, the officer said.
Srivastav, along with his acquaintances, operates a company from Paharjanj and targets people from Delhi-NCR.
Most payments are collected in cash.
He also sold his house here before running away, police said.
The investigation conducted so far has revealed that the defendant used to receive the monthly deposit of most cash and investors will maintain investment records in the passbook.
Investors are interested in an interesting 18 percent offer on the maturity of the scheme.
Srivastav also pays good returns to several investors at the early stages to win their faith and to attract more investors, police said.
In 2018, some money was paid back by lump sum after the maturity of the scheme, but when investors began asking Srivastav and other directors of the company to return their money with the promised return, the defendant escaped.
The company was not found registered at the Reserve Bank of India and was not authorized to raise money from investors in any scheme, police said.
Further investigation is underway to track other legs in crime, added the police.