According to media reports, the couple is accused of orchestrating a massive financial fraud amounting to thousands of crores through their share trading firm.

“They have been booked under sections 420 (cheating) and 34 (common intention) of the Indian Penal Code and under sections 3 (fraudulent default by financial establishment) and section 4 (attachment of properties on default of return of deposits) of the Maharashtra Protection of Interest of Depositors Act, 1999 (MPID),” said the police officer, as reported by Hindustan Times.

Also Read: ‘All India Pregnant Job’ scam in Bihar: Fraudsters offering money for ‘impregnating’ women arrested

Originally filed by Amboli police in June, the case centred around accusations of cheating and common intention under sections 420 and 34 of the Indian Penal Code. However, due to the escalating scale of the fraud, the case was later transferred to the EOW in August.

It is to be further noted that Krishna Hegde, a former Member of the Legislative Assembly (MLA), is one of 166 investors who have lodged complaints, claiming a combined fraud sum of ₹85.17 crore.

Also Read: From deepfake to phishing: Top 5 fraud trends anticipated in the financial sector in 2024 and strategies for mitigation

The accused operated Bliss Consultants, a stockbroking firm, to attract investors. Allegedly, investors were tempted to invest in companies listed on the Bombay Stock Exchange through the DIFM application. The couple imposed a 30% brokerage fee on profits and guaranteed investors an extra 2.5% monthly investment return via the DIFM trading app.

Also Read: Value of frauds in banking transactions spiked 10 times in 10 years, shows RBI data

Krishna Hegde, a victim in the case, pointed out that the accused couple had legal issues in Gujarat and Punjab, and they were implicated in a drug-related case in Madhya Pradesh, though they were subsequently cleared. Hegde stressed the importance of a comprehensive inquiry and confirmed that properties worth ₹165 crore had been seized.

Milestone Alert!
Livemint tops charts as the fastest growing news website in the world 🌏 Click here to know more.

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it’s all here, just a click away! Login Now!

Published: 01 Jan 2024, 09:51 AM IST