Mumbai Police Arrest 4 in ₹30-Crore Ponzi Scheme Bust

Mumbai Police's Economic Offences Wing has busted an alleged Ponzi and multi-level marketing (MLM) racket that collected around ₹30 crore from investors. The scheme, operating under the names AI Origin and Digital Origin, promised investors 5 to 7 per cent returns.

The investigation, led by the Economic Intelligence Unit (EIU), revealed that the scheme was still operational when police conducted raids at five locations and arrested four people - Shrikrishna Pandurang Chavan, Ankush Shantaram Patil, Dr Sudesh Mohite, and Subhash Pandhere.

According to investigators, the accused created an impression among investors that their money was being invested in businesses and projects such as BMC contracting, gaming applications, and solar projects. However, no substantial evidence of these projects was found.

The scheme operated through an MLM model, where people were asked to pay ₹1,500 for membership and were encouraged to bring more people into the scheme. Members were promised earnings after adding around 500 members, which helped the network expand rapidly.

During the raids, police seized approximately ₹12 lakh in cash, a BMW car, a Verna car, and seven laptops. Details of nine bank accounts were also recovered. The investigation revealed that the accused took around 60 people to Thailand as part of their promotional activities.

The police action came just as an office inauguration event was scheduled to be held in Satara. The EIU intervened and arrested the accused before the event could take place.

The scheme was reportedly being operated not only in Maharashtra but also through a network in Goa and Karnataka. The Economic Offences Wing is continuing its investigation and probing the possibility of identifying more investors, agents, and other people involved in the alleged racket.

The Mumbai Police's action is a significant step in cracking down on Ponzi schemes and MLM rackets that have been duping investors in the city. The police have urged investors to be cautious and not fall prey to such schemes that promise unusually high returns.

The busting of this racket also highlights the importance of cyber investigation and analysis in uncovering such scams. The police have been using advanced technology to track and gather evidence against the accused.

In recent years, Mumbai has seen a rise in such Ponzi schemes and MLM rackets, with many investors losing large sums of money. The police have been working to create awareness among investors and to take action against such schemes.

The investigation is ongoing, and the police are working to identify more people involved in the racket. The accused are currently in police custody and will be produced in court soon.

The Mumbai Police's Economic Offences Wing has been actively working to crack down on economic crimes in the city, and this bust is a significant achievement in their efforts. The police have urged anyone with information about such schemes to come forward and help them in their investigation.

In conclusion, the busting of the ₹30-crore Ponzi scheme is a significant step in protecting investors and preventing economic crimes in Mumbai. The police will continue to work to identify and take action against such schemes, and investors are urged to be cautious and not fall prey to unusually high returns.