Nalgonda: Police bust fake investment racket; 9 more held for siphoning off Rs 50 Cr
During the raids, police seized a range of high-end assets
By - Newsmeter Network
Nalgonda police bust fake investment racket, seized a range of high-end assets
Nalgonda: Nalgonda district police have busted a fake investment racket and arrested nine people for duping people of Rs 50 crore.
The gang, which floated a bogus company and promised lucrative monthly returns, allegedly siphoned off nearly Rs 50 crore from unsuspecting investors through local agents.
Swift action by District Police
Under the close supervision of District Superintendent of Police Sharath Chandra Pawar, multiple cases were registered against the accused under the Telangana Protection of Depositors of Financial Establishments Act, 1999 and Sections 316(2) and 318(4) of the Bharatiya Nyay Sanhita (BNS) at the Gudipally Police Station.
Nalgonda police have busted a fake investment racket and arrested nine people
The prompt investigation led to the arrest of the main accused and his associates, who had been absconding after collecting money from the public.
Fake company, real victims
According to the police, the prime accused Ramavath Madhu Naik, a small-time ice-cream seller was arrested on October 12. Naik and his associates floated a fictitious firm name Gokulanandan Infra Pvt. Ltd.
The gang projected themselves as successful entrepreneurs engaged in real estate, pubs, and cement manufacturing. To lure investors, they offered 15–18% monthly returns and issued fake promissory notes, creating an illusion of legitimacy.
Once substantial sums were collected, the accused diverted the money to buy luxury cars, land, and other properties, while losing large amounts in betting and stock trading.
Luxury cars and assets seized
During the raids, police seized a range of high-end assets, including: Fortuner, Creta, Venue, i20, MG, and Thar cars. Property documents, nine mobile phones, and a cash-counting machine. Officials stated that more properties and bank accounts linked to the accused are being traced to recover victims’ money.
Public caution from SP Pawar
Issuing a stern warning to fraudsters, SP Sharath Chandra Pawar appealed to the public not to trust middlemen or schemes offering unrealistic profits.
“People should verify the credibility of financial institutions before investing. The police will ensure that all complaints are investigated thoroughly, and the accused’s assets will be seized to compensate the victims,” he assured.
Investigation in progress
The case is being further investigated under the supervision of the Additional SP, with teams verifying the money trail and identifying additional agents involved in mobilizing deposits.
Police have also appealed to citizens who have invested in Gokulanandan Infra Pvt. Ltd. or related firms to come forward and lodge complaints.
