In a significant breakthrough, the Kolhapur police have apprehended a key suspect in a massive investment fraud case that allegedly duped investors of hundreds of crores of rupees. The arrest comes after the accused had been evading authorities for over a year and a half.
The Arrest at Belagavi Bus Stand
Acting on specific intelligence, the local crime branch (LCB) of the Kolhapur police arrested Somnath Madhusudan Koli on Thursday at the Belagavi bus stand in Karnataka. The operation was conducted under the instructions of superintendent of police Yogesh Kumar Gupta.
Investigators had received information that Koli, a resident of Daulatnagar in Kolhapur's Rajarampuri area, was hiding in Bengaluru and was travelling to Belagavi. Based on this tip-off, a team laid a trap at the bus stand and successfully took him into custody.
Details of the Multi-Crore Scam
Somnath Koli is one of nine individuals accused in a high-value investment scam orchestrated by a firm named GrowBuzz Trading Services. The company allegedly lured investors with promises of substantial returns.
The firm promised investors a 15% return on their investment over a period of just 10 months, a claim that proved to be fraudulent. While initial chargesheets cited the scam's worth at around Rs 12 crore, investors have contested this figure in court.
In a petition moved before the Bombay High Court's Kolhapur bench, the investors stated that the total value of the fraud amounts to a staggering Rs 259 crore. The significant discrepancy between the police's figure and the investors' claim has raised serious questions.
Long Evasion and Court Scrutiny
Koli had been absconding since October 2022, when the case was initially lodged. According to inspector Sushant Chavan of the LCB, Koli had been constantly travelling and hiding since then. To sustain himself, he had been taking up menial jobs.
His prolonged ability to evade capture had drawn the attention of the judiciary. The Bombay High Court recently questioned two former superintendents of police from Kolhapur, Shailesh Balkawade and Mahendra Pandit, demanding explanations for why Koli remained at large for so long. This court intervention cast doubts over the initial handling of the investigation.
Concurrently, the LCB carried out searches at multiple locations across Kolhapur and Sangli districts, targeting Koli's friends and relatives in an effort to trace his whereabouts.
Next Steps in the Investigation
With Koli now in custody, the Economic Offences Wing (EOW) of the Kolhapur police will take over the questioning. Investigators will interrogate him to uncover further details about the scam's operations, the flow of funds, and the roles of other accused persons.
This arrest marks a crucial step forward in a case that has highlighted the vulnerabilities of investors to sophisticated fraud schemes promising unrealistic returns. The police action is likely to bring some relief to the victims who have been seeking justice and recovery of their lost funds for a long time.
