UP Police EOW Arrests Director in Major Investment Fraud Case
The Economic Offences Wing (EOW) of Uttar Pradesh Police made a significant breakthrough on Friday with the arrest of a company director allegedly involved in a sophisticated investment fraud scheme that duped investors of over Rs 3.6 crore. The accused, identified as Santosh Kishan Sapkale, 48, from Surat, was apprehended from Netaji Subhash Chandra Bose Park in Surat after an extensive manhunt.
Reward and Evasion Tactics
Santosh Kishan Sapkale, who carried a reward of Rs 25,000 for his capture, had been frequently changing locations to evade arrest, according to police officials. His arrest marks a crucial step in the investigation into the fraudulent activities of his company, which had been registered at the EOW police station in Varanasi.
Fraudulent Scheme Details
EOW officials revealed that Sapkale and his associates had established companies registered for livestock-related activities, including goat farming, poultry, and dairy operations. However, these entities were allegedly used as fronts to run illegal investment schemes instead of legitimate agricultural businesses.
The company lured investors with promises to double their money within five years, operating without obtaining the mandatory registration from the Reserve Bank of India. This constituted illegal non-banking financial activities in violation of Section 45I(A) of the RBI Act.
Expansive Network and Collection Methods
To expand their fraudulent operations, the accused appointed agents and field leaders across multiple states, including Uttar Pradesh, Odisha, West Bengal, and Maharashtra. They widely promoted their investment schemes through these networks, collecting funds from investors through bonds and other financial instruments.
Investor Betrayal and Financial Loss
When the investment schemes reached maturity, investors were neither repaid their principal amounts nor compensated as promised. Cheques issued by the company bounced, leaving numerous victims facing substantial financial losses. The total amount defrauded from investors exceeded Rs 3.6 crore, according to police estimates.
Legal Implications and Ongoing Investigation
The arrest highlights the growing problem of investment fraud in India and the importance of regulatory compliance. The EOW continues to investigate the full extent of the fraudulent network and identify all individuals involved in the scheme. Authorities are urging affected investors to come forward with information to strengthen the case against the accused.
