Hyderabad: Central Crime Station registered a complaint against former IAS officer for allegedly duping people of Rs 4.8 Crores through a fraudulent investment scheme.
The complaint was filed by retired IPS officer 1980 batch ( undivided AP) K Ch Venkata Reddy, who was DIG of CID before superannuating as an IG in 2000, stated a group of fraudsters comprising of a retired IAS officer of 1980 batch have duped nearly 30 investors including him and some of his family members.
“The four fraudsters including a retired IAS officer of Tamil Nadu cadre who worked as a secretary to Government of India started a company in Bengaluru on July 3, 2015 and floated a shell company in Banjara Hills. The managing committee of the company widely publicized that their firm will provide the payment solutions to enable the merchants to accept debit/credit card payments. They also claimed that their product was ready for launch,” Venkata Reddy said.
“The fraudsters told the investors that under their proposed buyback scheme, shares of the investors will be purchased back within a period of one year during the exit window. The fraudsters promised that the investors who opt for buy back scheme during the exit window will get 4.88 times returns over their investment,” the complaint stated.
As many as 30 people fell prey to the fraud scheme and invested 4.8 crore during 2016-17 under buy back scheme of shares hoping that they will get fives times more.
“After the end of stipulated time period on December 31, 2017, investors asked the chairman of the company to pay the promised amount. The chairman said that they had entered into a business deal with a US based company and the amount will be paid to us soon. When they kept postponing the payment, we contacted the CEO of the said US based company and on April 30, 2019, received a reply from the CEO stating that there was no such deal between them and the company of the fraudsters,” the complainant alleged.
“I have forwarded the complaint for a preliminary enquiry,” CCS DCP Avinash Mohanty said on Monday.