The Economic Offences Wing (EOW) of the Cyberabad police has arrested the Managing Director (MD) of a private company, Kalidindi Pavan Kumar, along with seven others for orchestrating a massive scam that defrauded 3,600 investors of Rs 300 crore. The accused had promised substantial returns on investments through a series of fraudulent schemes.
The arrested individuals include Kalidindi Pavan Kumar, MD of 12 Wealth Capital Services Private Ltd, as well as Ravula Satyanarayana, Boddulu Harikrishna, Valluru Bhaskar Reddy, A Ravi Kumar Reddy, Kollati Jyothi, Kuralla Mounika, and Kurkula Lavanya. The police seized various documents, gadgets, computers, and two cars from the accused.
According to K. Prasad, Deputy Commissioner of Police, EOW, the accused began their operations a year ago from an apartment in Miyapur, collecting large sums of money from unsuspecting investors who were promised high returns. However, the investors were never paid the returns they were promised, leading to the scam’s exposure.
The schemes that duped investors included the “Buy-Back Open Plots” scheme and the “Double Gold” scheme. In the Buy-Back scheme, investors were encouraged to purchase plots of land for Rs 8.08 lakh, with the company promising a monthly return of 4% for 25 months. Business associates also received a commission for bringing in investors.
In the Double Gold scheme, investors were promised Rs 8 lakh worth of gold after investing a minimum of Rs 4 lakh. The company claimed to provide a gold biscuit with a Switzerland seal at the end of 12 months. Additionally, the Gold Chits Scheme promised investors a return of Rs 8 lakh after a 20-month plan, where they invested Rs 5 lakh and received monthly payments.
Despite the promises, the company did not deliver on any of the returns, leading to the arrest of the accused individuals. The police are continuing their investigation and are looking into further details of the fraud.
