A city-based businessman has alleged that he was defrauded of over Rs 6 crore by another businessman who collected the money under the pretext of investing in a recycled rubber manufacturing venture.
Complainant's Background
The complainant, Jignesh Shah (56), a resident of Hyderguda who is engaged in the chemical business, approached the CCS police with the allegation. He stated that the accused, identified as Aloysious, who claimed to represent a plastics and rubber manufacturing business, induced him to invest a substantial amount in a crumb rubber business.
Initial Contact and Assurances
Shah revealed that he came into contact with Aloysius in 2019 through a mutual acquaintance. According to the victim, Aloysious claimed that he initially operated a rubber factory at Kistapur and later relocated it to Lalgadi Malakpet in Medchal-Malkajgiri district. He assured Shah that he would be made a 50% partner in the business.
Transfer of Funds
Believing these assurances, Shah began transferring funds from April 29, 2019, to bank accounts provided by Aloysious. He alleged that he invested approximately Rs 6.21 crore until August 16, 2025. However, despite repeated requests, no partnership deed was executed.
Memorandums of Understanding
The complainant further claimed that two MOUs were executed in December 2020, promising repayment within three years. He also alleged that Aloysious sent misleading payment screenshots and even took Rs 50,000 in 2025 under the pretext of transferring money.
Police Action
The CCS police registered a case under Section 420 (cheating) of the Indian Penal Code and handed over the investigation to the Economic Offences Wing on May 1. The case is currently under investigation, and no arrests have been made so far.
