At Least 10 Investors Allegedly Cheated Through High-Return Investment Plans Operated Over Two Years
Police in Thane, Maharashtra, have registered a case against the proprietor of two financial investment firms accused of allegedly cheating at least 10 investors of approximately ₹1.20 crore through investment schemes promising guaranteed monthly returns from share market and foreign exchange (forex) trading.
According to investigators, the alleged fraud operated between 2022 and 2024, during which investors were persuaded to invest through promises of regular monthly income and attractive returns. The allegations are under investigation, and no court has determined the accused's liability.
Economic Offences Wing Conducted Preliminary Inquiry
The case was registered on July 24 following a preliminary inquiry conducted by the Economic Offences Wing (EOW).
According to police, the inquiry suggested a broader pattern of alleged cheating involving multiple investors and a referral-based network used to recruit new participants.
No arrest had been reported at the time of publication, and the investigation remains ongoing.
Investors Promised 5–6% Monthly Returns
Police allege that the accused promoted investment plans linked to share trading and forex markets, promising monthly returns of 5% to 6% over an investment period of approximately one year.
According to investigators, such assurances were presented as stable and predictable investment opportunities, encouraging individuals to transfer substantial amounts.
Authorities are examining whether these representations were supported by any legitimate trading activity or regulatory authorisation.
Complainant Invested ₹18 Lakh
According to the complaint, one investor transferred ₹18 lakh into the scheme.
Police said the complainant initially received ₹7.20 lakh as partial interest payments before further payments allegedly stopped.
Investigators believe that early payouts may have been used to create confidence in the investment programme and encourage investors to continue participating.
The complainant later approached the Economic Offences Wing after repeated demands for repayment allegedly went unanswered.
Nine More Investors Identified
During the preliminary inquiry, investigators reportedly identified nine additional investors who had invested money with the same firms.
According to police:
- One complainant allegedly lost approximately ₹18 lakh.
- Nine other investors allegedly suffered combined losses of around ₹1.02 crore.
The total alleged financial exposure currently under investigation is approximately ₹1.20 crore.
Authorities are examining whether additional victims may have invested but have not yet filed complaints.
Referral Network Under Investigation
Police allege that the investment operation relied on an agent-based referral network to attract new investors.
Investigators are examining:
- Referral commissions
- Investor introductions
- Communication records
- Bank transfers
- Marketing material
- Client onboarding documents
The investigation will determine whether any agents knowingly participated in the alleged fraud or were themselves unaware of the true nature of the scheme.
Regulatory Concerns Over Forex Investment Schemes
The case also highlights regulatory concerns surrounding forex-related investment offerings in India.
Under India's regulatory framework, resident investors may trade specified currency derivatives through recognised Indian stock exchanges, subject to applicable laws and regulations.
Authorities have repeatedly cautioned the public against transferring money to entities offering unauthorised forex investment schemes, guaranteed trading profits or offshore trading arrangements without appropriate regulatory approvals.
Whether the firms involved in the present case possessed all required registrations is part of the ongoing investigation.
Assured Returns Are a Warning Sign
Financial regulators have consistently advised investors to exercise caution when investment schemes promise:
- Guaranteed monthly returns
- Fixed profits from stock market trading
- Risk-free forex investments
- Assured doubling of capital
- No-loss investment opportunities
Legitimate investments in securities and foreign exchange markets involve varying degrees of market risk, and returns cannot generally be guaranteed.
Investors should independently verify all regulatory registrations before investing.
Police Examine Financial Records
Investigators are analysing:
- Bank account transactions
- Investor payment records
- Financial statements
- Business records
- Referral network details
- Digital communications
The objective is to reconstruct the money trail, determine how investor funds were utilised and identify any additional beneficiaries.
Growing Focus on Retail Investment Fraud
India has witnessed substantial growth in retail participation in financial markets over recent years.
As investor participation has expanded, regulators and law enforcement agencies have increased enforcement against alleged:
- Unregistered investment advisers
- Market manipulation
- Illegal deposit schemes
- Fake trading platforms
- Investment frauds
- Misleading financial promotions
Authorities continue to advise investors to verify whether businesses collecting public money are appropriately regulated before making any investment.
Applicable Legal Provisions
According to police, the case has been registered under provisions relating to:
- Cheating
- Criminal breach of trust
- Maharashtra Protection of Interest of Depositors (In Financial Establishments) Act
The investigation will determine whether additional legal provisions apply based on the evidence collected.
Investigation Continues
Police are continuing to examine financial records, regulatory compliance, investor documentation and banking transactions.
Investigators are also working to determine:
- Whether the firms held valid registrations.
- The complete movement of investor funds.
- Whether the referral network bears criminal responsibility.
- Whether additional investors remain unidentified.
The allegations will ultimately be assessed by the court after completion of the investigation.