Hyderabad’s Economic Offences Wing (EOW) has uncovered a massive financial scam involving 12 Wealth Capital Services Pvt. Ltd, a company accused of defrauding thousands of investors through fake lucrative investment schemes. The company’s managing director, Kalidindi Pavan Kumar, was arrested alongside several key individuals involved in the scam, including Ravula Sathyanarayana, Boddulu Harikrishna, Valluru Bhasker Reddy, Pagadala Ravi Kumar Reddy, Kollati Jyothi, Kuralla Mounika, and Kurkula Lavanya.
The accused had been luring investors with promises of high returns on investments, but instead of delivering the promised profits, they diverted the funds for personal gains. Thousands of people across the region had been misled into investing large sums, only to find that the company had been operating a Ponzi-style scheme.
The EOW acted on multiple complaints and conducted an investigation, leading to the arrests. Authorities have seized several properties and assets linked to the accused individuals, and further investigations are underway to trace additional fraudulent activities and possible accomplices.
The arrested individuals are facing charges under various sections of the Indian Penal Code (IPC) and the Indian Trusts Act, along with provisions of the Prevention of Money Laundering Act (PMLA).