Police bust inter state Ponzi scheme, arrest key accused from Kolkata

Police have identified the accused as Niaz Alam. REPRESENTATION PIC/ISTOCK

The Mumbai Crime Branch has arrested a key member of an interstate financial fraud syndicate identified as Niaz Alam, also known as Kabir, from Kolkata in West Bengal. Crime Branch officials said that the accused cheated two women - a 57-year-old businesswoman from Thane and her associate - of '5.45 crore. The victims run an NGO for women.

The incident began in October 2023 when two other accused - Sumona and Bhowmik - identified by their first names, approached the victim with an investment plan, which the accused claimed involved officers from JSW Ispat Special Products Limited and promised significant profits. Believing it to be legitimate, the victims handed over Rs 1 crore in cash at an office in Malad to intermediaries working for the accused. They were assured the money would be credited to their accounts within hours, but no funds were received.

The accused later claimed additional deposits were required to complete the process. Over several months, the victims invested a total of '5.45 crore through cash transactions, Angadia networks, and cryptocurrency transfers. Despite repeated assurances, the money was never returned. When all attempts to recover their funds failed, the victims reported the matter to the police. Following the registration of the case, the Mumbai police, after detailed technical surveillance, tracked down Alam in Kolkata and arrested him on December 23 and brought him back to Mumbai on a four-day transit remand.

Police said that they seized five SIM cards, eight mobile phones, multiple bank cards, and blank Telangana state stamp papers from the accused. The police are now investigating the roles of other accused persons, including Sumona, Bhowmik, and one other, identified as Bharat Seth, who allegedly managed the fraudulent transactions.

Witness statements and technical evidence indicate the involvement of a well-organised group using Angadia networks and cryptocurrency to carry out the scam. "The accused created an elaborate scheme to deceive the victims by falsely associating their investment plan with a reputed company to gain trust. Efforts are ongoing to trace the remaining suspects and recover the defrauded money," said a police officer. Crime Branch officials have said they are in the search of at least six other accused who are part of the interstate fraud syndicate.