The Economic Offences Wing (EOW) of Hyberabad arrested two individuals on Saturday for allegedly swindling Rs 850 crore through fraudulent promises of high returns in the Falcon Invoice Discounting Platform (FIDP). The arrested suspects, Pavan Kumar Odela, the business head of the Falcon platform, and Kavya Nalluri, associated with Falcon Capital Ventures Pvt Ltd, operated a large-scale Ponzi scheme.
According to police reports, Odela, who serves as vice-president, and Nalluri, director of Capital Protection Force Pvt Ltd, used deceptive tactics to lure victims. The company collected approximately Rs 1,700 crore in deposits but only repaid Rs 850 crore to the investors.
The duo launched a mobile application and website that falsely presented the Falcon platform as a legitimate peer-to-peer invoice discounting service. They promised investors annual returns ranging between 11% and 22%, claiming that their deposits would be connected to major industry players. However, the platform was a facade, as vendor profiles and deals were fabricated.
Investors were persuaded to deposit amounts ranging from Rs 25,000 to Rs 9 lakh for periods ranging from 45 to 180 days. The scheme, which began operations in 2021, followed the typical structure of a Ponzi scheme by recruiting new depositors to pay returns to earlier investors. The funds raised were channeled into shell companies, with some funds allegedly invested in a property firm based in Dubai.
By January 15, 2025, the scheme collapsed when the promised returns ceased, and the office was shut down. Investigations also revealed that the accused were linked to Blulife International, a multi-level marketing scheme, which was another vehicle used to deceive the public.
The police have charged Odela and Nalluri with multiple offenses, including fraud, and are continuing their investigation into other aspects of the scam.
