Cyberabad EOW Registers FIR in Major Investment Fraud Case
The Economic Offences Wing (EOW) of Cyberabad has taken decisive legal action by registering a First Information Report (FIR) against six individuals connected to Advika Trading Company. The case centers on allegations of a sophisticated Ponzi scheme that defrauded 18 investors of a staggering sum exceeding 1.89 crore rupees.
Complaint Details and Modus Operandi
The investigation was initiated based on a formal complaint filed by Asif Ali, a 56-year-old businessman from Khilwath, Hyderabad. According to the complaint, Asif Ali and his acquaintance, Mohammed Abdul Quadeer (64) of Asif Nagar, were first approached in 2023-24 by one of the accused, U Kiran Kumar. Kumar presented himself as a digital communications staff member of Advika Trading Company, which maintained offices in both Vijayawada and Hyderabad.
"After repeated persuasion, I attended promotional meetings where company representatives claimed they were engaged in forex trading, profit-sharing arrangements, and trading in Indian equities and derivatives," the complainant stated. "They offered assured returns ranging from 6% to 8%, with the exact percentage dependent on the investment amount."
Building False Confidence and The Scheme's Collapse
Police officials revealed that the accused employed a classic confidence-building strategy. Initial payouts were issued to early investors to create an illusion of legitimacy and encourage them to invest larger sums, often through referrals. This tactic proved effective, with Asif Ali confirming that 16 additional individuals were persuaded to invest, bringing the total number of victims to 18.
The accused maintained consistent communication with investors primarily through WhatsApp. To further bolster credibility, they organized events at prominent star hotels and even established a physical office near HITEC City in Hyderabad.
The scheme began to unravel in February 2025, when the company abruptly ceased all return payments. Investors were given various excuses, including technical glitches and foreign policy restrictions. In a desperate move characteristic of Ponzi schemes, victims were then pressured to recruit new clients, with fresh funds being used to pay earlier investors until the operation collapsed completely by June 2025.
"It was at this point that we realised it was a Ponzi scheme," the complainant told police during the investigation.
Legal Charges and Ongoing Investigation
Based on the detailed complaint, the EOW has registered a case under multiple sections of the law. The accused named in the FIR include:
- Venkata Aditya Tadepalli, the proprietor of Advika Trading Company
- Tadepalli Sujatha, the chairperson of the company and wife of the proprietor
- Company employees SM Narasimha, Pushyami Keerthi, Ravi Kiran, and U Kiran Kumar
The charges have been filed under Sections 318(4) (cheating) and 316(2) (criminal breach of trust) of the newly enacted Bharatiya Nyaya Sanhita (BNS), as well as Section 5 of the Telangana State Protection of Depositors of Financial Establishments (TSPDFE) Act.
Cross-Jurisdictional Implications and Official Statement
An EOW official provided crucial context, stating, "The total investment from the 18 identified victims is confirmed to be over 1.89 crore. It is important to note that the accused are already facing a separate criminal case in Vijayawada based on similar allegations. Our team is actively collecting detailed statements from all victims and gathering documentary evidence. Based on the evidence compiled, appropriate legal proceedings will be initiated."
This case highlights the persistent threat of investment fraud in the region and underscores the proactive role of the Cyberabad Economic Offences Wing in tackling complex financial crimes. The investigation remains ongoing as authorities work to secure justice for the defrauded investors.
