Cops suspect the extent of the fraud by Kaak Economic Marketing run by Borivli resident Kishore Kakde could be at least Rs 100 crore
Accused Kishore Kakde, who floated the Ponzi schemes
The owner of a Borivli-based firm has been arrested for allegedly duping about 25,000 people with the lure of schemes with unbelievably high returns in the past two years. The police suspect Kaak Economic Marketing Pvt Ltd tricked investors, including house help, drivers, auto and taxi drivers who might have lost their life’s savings. One of the Ponzi schemes apparently offered a 1,000 per cent gain on fixed deposits over a year.
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The Borivli police said accused Kishore Kakde came up with schemes that promised monthly ration and steady income. Under his scheme Lagan Basta Kanya Dhan Yojna, each investor’s daughter was to get furniture and electronics worth Rs 2 lakh, on a one-time payment of Rs 10,000. The company also promised a car if an investor kept Rs 52,000 with it for a year.
The police said Kakde operated from his office at Orchid Plaza in Borivali west. His arrest on February 19 came on a complaint by a senior citizen who had invested Rs 7 lakh in a Kaak scheme, but turned out to be bogus. A police officer said Kakde had told his customers that they would be given a monthly ration worth Rs 8,000 for a year if they invested Rs 25,000. Investors were initially thrilled to get ration every month, but it stopped after a few months, he said.
Office of Kaak Economic Marketing, at Orchid Plaza, Borivli West. Pic/Anurag Ahire
“We suspect 25,000 investors were duped. We are trying to ascertain the exact extent of the fraud which would be at least Rs 100 crore,” said the officer. Kandivli resident Rajesh Manjal said he was defrauded by Kaak. “I was a delivery boy and my wife washed dishes in people’s homes. Kaak’s representatives promised us to give groceries every month for a year on payment of Rs 5,000. During lockdown, I was struggling to feed my family. I raised the money by mortgaging my wife's jewellery,” he told mid-day.
Manjal said, “We were given ID cards for ration. We got grains for two months, but then it was stopped. When we went to Kaak’s office to complain about it, the bouncer there didn’t let us meet. After a few attempts, the staff met us once. They noted our complaint, but nothing happened.” Manjal said his mother-in-law’s sister Mahadevi Dhotre and his mother invested Rs 10,000 each in the company’s FD by mortgaging their jewellery. “They offered R1 lakh in return after a year and a car through a lucky draw. They never got the money. There are hundreds of victims like.”
Kakde’s company allegedly used bouncers to scare off investors who tried to raise complaints. In the scheme which was started in the name of Maharaja Card, on depositing Rs 5,000, the scheme holder was promised to give ration of 21 hundred rupees every month for one year. A police officer said the company raised the price of Rs 5,000 ration scheme, which it called Maharaja card, to Rs 25,000 after people began thronging its office.
In some cases, investors were allowed to meet the staff at Kaam who noted the complaints but did not act on them
“They promised facilities like medical, petrol, gas cylinders, cake and tours up to Rs 8,000 every month for 12 months. On FDs, the promised return was 10 times the invested money and 20 per cent monthly payment,” said the officer. A team of 26 officers raided the office on Saturday and seized documents, hard disks and laptops. “So far we have checked around 25,000 complaints. The cheated amount will increase further,” he added.
My life’s savings are gone
A 73-year-old retired LIC agent said he had invested his life’s savings in Kaak a couple of years ago but he refused to share his name saying the company officials could register a case against him. He told mid-day, “I had invested about Rs 19 lakh and the company promised that we will get 20 per cent interest every month. More than two years have passed, but I have not received even a single rupee.” He added, “I have been going to the office for almost one year, but more than 50 bouncers posted outside the office stopped me outside.”
“I came to know there are over two lakh people like me who had invested money in Kaak but did not get the returns. I request the police to investigate and put all the culprits behind the bars. I also request all who have been cheated by the bank to register police complaints,” he said. Another victim said, “Many people work as agents for the company and have also invested themselves. They even got benefits of cars, bikes and other schemes. The company has cheated the poor and simple people. I had invested in the Maharaja scheme for ration but did not get anything.”
1,000%
Returns promised by the firm
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