Bengaluru: The managing director of a Bengaluru-based investment company and four of his associates who allegedly swindled a businessmen of around Rs 12 crore by promising him high returns, have been arrested in south Bengaluru.
The scam came to light when the owner of an incense sticks manufacturing firm filed a complaint with the police alleging that he and his brother had invested Rs. 11.7 crore with the firm in 2016 and that the accused were refusing to return their money.
Based on the complaint, the police have registered a case under Section 403 (dishonest misappropriation of property), 406 (criminal breach of trust) and 420 (cheating). The accused Ragavendra Srinath and his associates Narasimha Murthy, Prahalad, K.C. Nagaraj, and Sutram Suresh, a former sports journalist, have been arrested.
“Our investigations show that the accused have cheated over 500 investors, including businessmen, IT professionals, doctors, and engineers,” said the police.
According to the police, Srinath, who runs Vikram Investments at Banashankari, had taken money from people to invest in shares and promised them high returns. An investor, P.R. Balaji, a resident of Chikkakalasandra who runs incense sticks unit, and his younger brother Bhaskar had invested Rs. 11.7 crore. They told the police that initially the firm had paid them the promised high returns, but that soon stopped.
