The Economic Offences Wing (EOW) of the Uttar Pradesh Police has made a significant arrest in a high-profile investment fraud case, apprehending businessman Shailesh Kumar Upadhyay from Gorakhpur. This action is part of an ongoing crackdown targeting individuals involved in deceptive investment schemes that have defrauded investors of crores of rupees across the state.
Details of the Arrest and Accused
Shailesh Kumar Upadhyay, currently residing in Benajhabar in Kanpur Nagar and originally from Raunapar village in Gorakhpur, was taken into custody on Friday. He served as a director of M/s Pears Allied Corporation Limited, a company registered with the Registrar of Companies (ROC) in Delhi and Haryana. The firm was led by Chairman and Managing Director Durga Prasad Dubey, along with other directors and employees, who are all under scrutiny for their roles in the alleged fraud.
Modus Operandi of the Fraudulent Scheme
The company operated branches in Bijnor and various other districts without obtaining the mandatory Non-Banking Financial Company (NBFC) registration as per Reserve Bank of India (RBI) norms. Investors were enticed with promises of doubling or tripling their funds within a short period through the company's Recurring Deposit (IBP) and Fixed Deposit (SIP) schemes. Investigations have revealed that the directors issued fabricated bonds and receipts to investors, while misappropriating approximately Rs 14 crore of the invested funds.
Investigation and Legal Proceedings
Following the closure of the company's offices and branches, and the absconding of the directors, an initial complaint was registered at the Alambagh police station in Lucknow. The case was filed under sections 409 (criminal breach of trust), 420 (cheating), 467 (forgery of valuable security), 468 (forgery for purpose of cheating), 471 (using as genuine a forged document), and 120B (criminal conspiracy) of the Indian Penal Code. After preliminary investigations, the case was transferred to the EOW for a more thorough probe.
The EOW's investigation has identified 13 accused individuals as culpable in this elaborate scam. The arrest of Shailesh Kumar Upadhyay marks a key breakthrough in the case, with ongoing efforts to apprehend the remaining fugitives. Officials have emphasized that tracing the company's remaining assets and recovering the defrauded investor funds are top priorities in this ongoing investigation.
