A significant financial fraud has been uncovered in Mumbai's Bhandup area, where at least 66 investors were allegedly cheated out of ₹3.6 crore under the guise of high monthly returns and a money doubling scheme.
The Complaint
Sultan Sheikh, a courier employee, lodged a complaint stating that he invested ₹16.8 lakh in February 2024 after being promised high monthly returns by operators of two financial services companies. Subsequently, his family and friends also invested their money. Initially, he received some payments, but the instalments stopped after June 2024. The accused allegedly provided false explanations, gave bogus assurances, and later absconded after shutting down their office.
Details of the Scheme
According to the complaint, Sheikh was promised ₹1.2 lakh per month for 15 months in exchange for an investment of ₹4.2 lakh under a scheme run by the two companies, which claimed to be financial advisers. Trusting the scheme, Sheikh initially invested ₹4.2 lakh by selling his gold chain and making online transfers. He received two instalments totalling ₹2.4 lakh. Subsequently, the accused convinced him to reinvest a larger amount with revised terms. He arranged ₹12.6 lakh by selling his family jewellery and borrowing money, bringing his total investment to ₹16.8 lakh.
Payments stopped after June 2024. When confronted, the accused cited various excuses, including election-related delays and banking issues. Later, they allegedly claimed that a key associate had fled with the funds but assured repayment, said a Bhandup police officer.
Further Allegations
The complainant further alleged that token cash payments of ₹20,000 were made to maintain trust, while some investors were issued money orders that reportedly bounced. By January 2025, the accused had allegedly shut their office in Khindipada, Bhandup, and gone incommunicado.
Accused Named
The FIR names Haroon Sheikh, his wife Nilofer Sheikh, son Rakib Sheikh, mother Halima Sheikh, associates Yakub Wariya and Shahnawaz Wariya, along with Paras Choksi and his associate Preeti Choksi alias Lovely. The two firms have also been named as accused.
Investigation
Police said the accused allegedly collected ₹16.8 lakh from the complainant and ₹3.49 crore from 65 other investors, promising fourfold returns within 16 months, but failed to repay either the returns or the principal amount. A case of cheating, criminal breach of trust, and criminal conspiracy has been registered under the Maharashtra Depositors Protection of Interest in Financial Institutions Act, 1999. Further investigation is underway, and the police are searching for the suspects.
