Mangaluru, Karnataka: In a major crackdown, Surathkal police have arrested two persons for allegedly running an illegal deposit scheme that defrauded more than 13,000 investors to the tune of over ₹10 crore. The schemes, named New India Royal Scheme and Green Light Lucky Scheme, promised high returns and attractive prizes but abruptly shut operations, leaving investors cheated.
Details of the arrest
Commissioner of Police Sudheer Kumar Reddy C H identified the accused as Mohammad Ashraf Bajpe (43), a resident of Bajpe currently residing at Kadri Kambla Road, and Mohammad Hanif (50) of Krishnapura, Katipalla village.
The arrests were made following a complaint by Bhujanga A Poojary (51) of Chelairu village, who alleged that the scheme was run without necessary government approvals. A case was registered at Surathkal Police Station on August 11 under Sections 316(2), 318(4) of the Bharatiya Nyaya Sanhita (BNS) and Section 21 of the Banning of Unregulated Deposit Schemes (BUDS) Act.
How the scam worked
Investigations revealed that the accused lured investors with promises of high returns. Handbills advertised that by paying ₹1,000 per month for 10 months—totalling ₹10,000—participants would receive ₹12,000 in cash at the scheme’s end. Monthly draws were also promised, with prizes including cars, bikes and gold rings.
However, after collecting deposits, the operators closed their Katipalla office, leaving thousands of investors in shock.
Previous schemes under probe
Commissioner Reddy revealed that the accused had earlier operated other dubious schemes, including New India Premium Scheme and New India Bumper Scheme. These too are now under police scrutiny.
Police have seized bank accounts, gold ornaments, houses in Boloor and Bajpe, five land plots in Bajpe Tarikambla, vehicles and computers used in the scam. Authorities have also initiated proceedings to confiscate immovable properties and other assets purchased with investors’ funds.
Legal action and next steps
The arrested duo were initially remanded in police custody for seven days. They are now in judicial custody for 15 days as investigations continue. Police have urged all investors and agents associated with the schemes to provide relevant documents to assist in the probe.
The investigation is being led by Inspector Pramod Kumar P, supported by Sub-Inspectors Raghu Nayak, Raghavendra Naik, Janardhan Naik and Shashidhar Shetty.
Community reaction
Local residents expressed concern over the rising number of fraudulent deposit schemes, urging stricter monitoring of financial activities in the region. Authorities have warned the public to verify the legitimacy of any investment scheme before depositing money.
Conclusion
The case highlights the dangers of unregulated deposit schemes and the importance of due diligence before investing. Police have assured that strict action will be taken to ensure investors recover their money and the perpetrators face the full force of the law.