Surathkal police have booked the proprietor and manager of the New India Royal Scheme in Katipalla for allegedly running an unlicensed deposit plan that defrauded over 10,000 people of more than ₹10 crore.
According to the complaint, the accused launched the scheme in Katipalla village, promoting it through pamphlets promising hefty cash returns and luxury prizes. In July 2024, the complainant visited their office and met Haneef, who claimed that by paying ₹1,000 per month for 10 months, participants would receive ₹12,000 in cash at the end, along with chances to win prizes such as cars, bikes, and gold rings.
Enticed by the offer, the complainant paid the first instalment in cash and subsequently transferred monthly payments via Google Pay, completing the last instalment on April 21. Police allege that similar deposits from thousands of members amounted to several crores, all collected without a valid licence.
When the scheme matured, the complainant sought the promised payout or prize. However, the accused repeatedly delayed payments, claiming they were “in process.” About two months ago, proprietor Mohammad Ashraf and manager Haneef allegedly shut down their office without settling dues.
Investigators say the duo operated the scheme with fraudulent intent, misusing public trust to amass huge sums. A case has been registered at Surathkal police station under relevant sections of law, and further investigation is underway to trace the collected funds and identify additional victims