Rs 14 crore investment scam: Well Vision Group chief in KPHB held for duping 200 investors

Hyderabad: The Economic Offences Wing (EOW) Police of Cyberabad arrested a person who was involved in cheating, criminal breach of trust with criminal conspiracy and collected huge money from complainant and others to the tune of Rs 14 crore in the name of investment and good returns.

The person was identified as Kandula Srinivasa Rao (44), a native of Eluru, West Godavari District, Andhra Pradesh. A case was registered against him under U/s 316 (2), 318 (4), 61 (2) BNS and Section 5 of the Telangana Protection of Depositors of Financial Establishment Act- 1999 of EOW PS, Cyberabad, following a complaint given by A Jhansi.

The accused persons gave MOU, lease deeds and post-dated cheques to victims as collateral security. After collecting money from the victims, the accused paid monthly returns for a few months only; later, they failed to fulfil their promise and closed their company. So far, 35 victims have approached the EOW Police Station, Cyberabad.

Case details

Deputy Commissioner of Police (EOW, Cyberabad) K Prasad said that the accused established several companies under the style of Well Vision Group of companies and induced the customers/investors in the guise of investment/deposits and huge monthly returns.

He cheated about 200 members and collected around Rs 14 crore from them. The accused operated his business from their office situated at Omkara Nilayam, Venkataramana Colony, Gokul Plots, Market Line, KPHB Colony, Hyderabad.

Modus operandi

As part of the execution of their plan, the accused launched the following schemes and cheated the innocent investors/depositors.

Scheme 1: If a person deposits Rs 1,00,000, they will get 200 per cent returns, i.e. Rs 2,000 daily for 100 working days (Rs 2000 x 100 = Rs 2,00,000). For every transaction, they took 10 per cent of service charges. For this they will create an online ID in their system.

Scheme 2: If a person deposits Rs 1,00,000, they will get 200 per cent returns, i.e. Rs 20,000 monthly for 10 months (Rs 20,000 x 10= Rs 2,00,000). For every transaction, they took 10 per cent of the service charge.

Scheme 3: If a person deposits Rs 6,50,000, they will register an open plot measuring 121 sq yards as a goodwill and refund the entire investment money in 20 instalments, i.e., Rs 32,500 x 20 months = Rs 6,50,000. For this, they will give an MOU and a cheque as a security deposit. Price may differ as per locations of the land.

Scheme 4: If a person purchases any well vision home appliances (like TV, washing machine and AC etc.) they will give these appliances as goodwill and refund the entire investment money in 20 instalments. For example, if they purchase a TV for Rs 30,000, they will give the TV as goodwill and refund the amount as Rs 1500 x 20 months (Total Rs 30,000).

For the above schemes, the investment amount is from Rs 10,000 to Rs 50,00,000.

Public advisory

The Cyberabad EOW Police hereby advised the public to be aware of fraudsters and cheaters and not to invest money without proper inquiry in the name of good returns. The department is committed to prosecuting the fraudsters and cheaters and ensuring justice for victims.