Cyberabad EOW Probes Private Firms Over Rs 4.51 Crore Investment Fraud Scheme
The Cyberabad Economic Offences Wing has registered a case against two private firms for allegedly defrauding investors of Rs 4.51 crore. The companies promised high returns through fake stock trading and organic farming schemes before stopping all payments in October 2025.
Highlights
- •Cyberabad EOW is investigating two private firms for running fraudulent investment schemes.
- •Investors were lured with promises of 18% to 48% returns from stock trading and farming.
- •Total losses for the identified group of investors are estimated at Rs 4.51 crore.
- •Payouts abruptly stopped in October 2025, leading to the formal police complaint.
The Cyberabad Economic Offences Wing (EOW) has initiated a formal investigation after filing a criminal case against the promoters, directors, and various associates linked to two private entities. These individuals are facing serious accusations of orchestrating unauthorized investment schemes and systematically defrauding participants by promising unrealistically high financial returns.
Authorities were alerted following a detailed complaint regarding these investment schemes. According to the allegations, the accused entities enticed unsuspecting investors by claiming to operate a highly profitable algorithm-based stock market trading business alongside various organic farming ventures. Victims were frequently promised substantial monthly dividends and annual returns ranging from 18 per cent to 48 per cent.
Details of the Alleged Investment Fraud
The primary complainant reported that his family had deposited approximately Rs 1.92 crore into these ventures during the period between 2022 and 2023. Further internal communications from the involved firms reportedly acknowledged outstanding dues exceeding Rs 2.42 crore. When combined with deposits made by other identified investors, the total financial impact of the investment fraud is estimated to be around Rs 4.51 crore.
Throughout the duration of the scheme, the accused allegedly provided various excuses to appease concerned investors, often citing administrative delays attributed to a proposed Initial Public Offering (IPO) and the associated due diligence requirements. These explanations were used to mask the underlying instability of the businesses.
However, the situation reached a critical point in October 2025 when the firms completely ceased all monthly dividend payouts. Investors soon discovered that their principal capital remained inaccessible, even after the designated lock-in periods had expired. With the promised returns failing to materialize and the invested capital seemingly gone, the victims sought intervention from the authorities.
The Cyberabad EOW has now launched a comprehensive inquiry into the operations of these private firms. Investigators are currently examining the flow of funds and the legitimacy of the promised ventures to determine the full scale of the deception. The case highlights the significant risks associated with unregulated investment platforms that guarantee high, risk-free returns.
