A significant financial fraud has emerged in Mumbai's Bhandup area, where at least 66 investors were allegedly defrauded of Rs 3.66 crore under the pretext of high monthly returns and a money doubling scheme.
Complainant's Ordeal
The complainant, Sultan Sheikh, a courier employee, stated that he invested Rs 16.80 lakh after being promised substantial monthly returns. Subsequently, his family and friends also invested. Initially, some payments were made, but instalments ceased after June 2024. The accused allegedly provided false reasons, issued bogus assurances, and later absconded after shutting down their office.
According to the complaint, the accused lured Sheikh into investing in February 2024 by offering lucrative returns. He was promised Rs 1.20 lakh per month for 15 months against an investment of Rs 4.20 lakh under a scheme run through firms S.N.D. Wealth Advisor and KGN Fincorp Services. Trusting the scheme, Sheikh initially invested Rs 4.20 lakh by selling his gold chain and making online transfers. He received two instalments totalling Rs 2.40 lakh. Subsequently, the accused allegedly convinced him to reinvest a larger amount with revised terms. He arranged Rs 12.60 lakh by selling family jewellery and borrowing money, bringing his total investment to Rs 16.80 lakh.
Payments Halted
Payments stopped after June 2024. When confronted, the accused cited various excuses, including election-related delays and banking issues. Later, they allegedly claimed that a key associate had fled with the funds but assured repayment, said an officer from Bhandup police. The complainant further alleged that token cash payments of Rs 20,000 were made to maintain trust, while some investors were issued money orders that reportedly bounced.
Office Shut Down
By January 2025, the accused had allegedly shut their office in Khindipada, Bhandup, and became incommunicado. The FIR names Haroon Sheikh, his wife Nilofer Sheikh, son Rakib Sheikh, mother Halima Sheikh, associates Yakub Wariya and Shahnawaz Wariya, along with Paras Choksi and his associate Preeti Choksi alias Lovely. The firms have also been named as accused.
Police said the accused allegedly collected Rs 16.80 lakh from the complainant and Rs 3.49 crore from 65 other investors, promising fourfold returns within 16 months, but failed to repay either the returns or the principal amount. A case of cheating, criminal breach of trust, and criminal conspiracy has been registered, and further investigation is underway.
