Hyderabad: Retired IAS officer loses Rs 3.37 Cr after falling prey to online investment scam

Hyderabad: A retired IAS officer from Hyderabad has fallen victim to an elaborate online investment scam, losing over Rs 3.37 crore to cyber fraudsters who impersonated officials of a reputed trading firm and promised high returns through AI-based trading platforms.

In his complaint to the Cyber Crime Police Station, TGCSB, Hyderabad, 72-year-old Kaza Ratna Kishore, a former senior bureaucrat, alleged that he was lured into the fake scheme by fraudsters using the brand name and logo of “Dhani Securities,” falsely citing SEBI registration and a depository account number.

Modus Operandi

According to the complaint, the fraud began in early May 2025, when the complainant came across a trading platform link shared by a woman identifying herself as Arjun Mehta. She initiated contact via WhatsApp and introduced Kishore to an investment model promising lucrative returns through mutual funds, IPOs, and options trading.

Soon after, a man named Arjun Ramesh Mehta, posing as the platform’s Chief Investment Officer, began sending detailed trading strategies and market predictions, claiming to use AI-powered tools with 90 percent accuracy. He also offered access to “exclusive IPO listings” with 120–160 percent profit margins, further enticing the victim.

The scammers created the illusion of legitimacy through fake login portals and daily WhatsApp broadcasts. They maintained pressure by emotionally manipulating the victim, praising his persistence and encouraging him to “complete the journey” by paying a “platform fee.”

False assurances and heavy losses

Kishore was repeatedly told that his investment profits, amounting to Rs 25.91 crore, would be released only after paying a 10 percent platform fee of Rs 2.23 crore. Despite transferring funds in multiple transactions between March 30 and May 15, totaling Rs 3.37 crore, he was unable to access any returns or withdraw funds.

The funds were routed through 33 transactions across ICICI Bank, SBI, and Union Bank of India. The fake platform, despite showing a running balance, never reflected the platform fee payments.

Police case registered

Based on the complaint, the Cyber Crime Police have registered a case under Sections 318(4), 319(2), and 338 of the Bharatiya Nyay Sanhita (BNS), Section 66-D of the Information Technology Act, 2000.

The case is being investigated by Inspector D Ashish Reddy under the supervision of KVM Prasad, Deputy Superintendent of Police, who confirmed that a team has been assigned to trace the accused and identify the accounts used in the fraud.

Advisory to the Public

Officials have warned the public to exercise caution when approached with high-return investment schemes online. They have advised verifying SEBI registration details on official portals and refraining from transferring funds without due diligence.