An alleged investment fraud in Gujarat's Bhavnagar district has grown into what investigators believe could be a major financial scam. Police allege that two cousins attracted investors by promising 20% returns on stock market investments, collected large sums of money, and later absconded.
Although complaints officially registered so far involve around ₹1.29 crore, several alleged victims claim the total fraud may range between ₹300 crore and ₹400 crore. Police have clarified that these larger claims are still under verification.
The accused, Yogesh Dhamecha and Sanjay Dhamecha, are currently in police remand until July 13, while investigators examine the alleged investment network and determine whether additional individuals participated in the scheme.
Police Suspect Ponzi-Style Operation
According to investigators, the accused allegedly used funds collected from new investors to pay the promised 20% returns to earlier investors. Police believe this helped build credibility and encouraged more people to invest before the network allegedly collapsed.
The investigation began with complaints from seven investors involving approximately ₹1.03 crore. Subsequently, eight additional complaints increased the officially recorded amount to nearly ₹1.29 crore.
Since then, nearly 100 individuals have approached the police with documents claiming investments in the scheme.
Agent Network and Money Trail Under Scanner
Investigators are analysing financial transactions, communications, bank accounts, investment records, and digital evidence to determine how the alleged network functioned.
According to several social workers and alleged victims, the investment operation may have extended across 30 to 35 villages through an estimated 100 to 150 agents. Some agents reportedly said they were shown stamp paper agreements to establish credibility before convincing others to invest.
Several agents have also claimed they personally suffered losses amounting to several lakh rupees.
Police are now attempting to determine the total amount collected, reconstruct the money trail, and identify every individual allegedly associated with the operation.
Shunyatax Global Insight
Shunyatax Global says that investment frauds promising fixed monthly returns or unusually high profits often display classic Ponzi characteristics. Before investing, individuals should:
- Verify whether the investment is regulated by SEBI.
- Independently verify the company's registration and business model.
- Be cautious of guaranteed high-return promises.
- Avoid investing solely based on referrals or agent recommendations.
- Preserve payment records, agreements, and communications to assist investigations if fraud is suspected.
Police have stated that the investigation remains ongoing, with additional complainant statements, documentary evidence, and financial records continuing to be examined before further legal action is taken.