Falcon Invoice Discounting Ponzi Scam: Cyberabad cops nab two in Rs 850 crore fraud case

Hyderabad: The Economic Offences Wing (EOW) of Cyberabad arrested two individuals on Saturday in connection with a Rs 850 crore Ponzi scheme involving the Falcon Invoice Discounting Platform.

The accused allegedly deceived the public by persuading them to make short-term deposits with the promise of high returns.

Case details

Deputy Commissioner of Police, (EOW), Cyberabad K Prasad said that the arrested individuals were identified as Pavan Kumar Odela, vice president of Capital Protection Force Pvt Ltd & Business Head of Falcon Invoice Discounting Platform and Kavya Nalluri, director of Capital Protection Force Pvt Ltd & Falcon Capital Ventures Pvt Ltd.

Disclosing the case details, the accused were involved in a large-scale financial fraud amounting to Rs 850 crore, orchestrated through Falcon Invoice Discounting Platform under Capital Protection Force Pvt Ltd and its associated entities.

Fraudulent scheme

The primary accused, Amardeep Kumar (Managing Director, Falcon Capital Ventures Pvt Ltd), along with Aryan Singh (Chief Operating Officer) and Yogender Singh (Chief Executive Officer), lured depositors by promising high returns on short-term deposits under the guise of invoice discounting.

The total deposits collected were Rs 1,700 crore, the amount repaid was Rs 850 crore, the outstanding fraudulent amount was Rs 850 crore and the number of depositors affected were as many as 6,979 persons, he said. People from Mumbai, Bangalore, Hyderabad have invested in the scheme and lost money.

Modus operandi

The accused launched a mobile application and website, falsely presenting Falcon Invoice Discounting Platform as a legitimate peer-to-peer invoice discounting service. They claimed to connect depositors with reputed companies such as Britannia, Amazon, and Godrej, while in reality, they fabricated vendor profiles and fake deals to create an illusion of authenticity.

The accused promised returns 11%–22% per annum, the deposit range was Rs 25,000 to Rs 9,00,000 and the maturity period was 45 to 180 days. Operating since 2021, the accused continuously recruited new depositors to pay returns to earlier investors, forming a classic Ponzi scheme.

The funds collected were diverted into various shell companies. By January 15, 2025, the scheme collapsed, promised returns were halted, and the office was shut down, prompting depositors to file complaints with the police.

Diversion of funds

Depositors’ funds were misappropriated to acquire and establish multiple companies, including:

1. Coin Trade – Cryptocurrency platform.

2. Blulife International India – Multi-level marketing schemes.

3. UKIYO Resort (Goa) – Luxury hospitality.

4. Prestige Jets (Dubai) – Private charter services.

5. Falcon International Properties (Dubai) – Real estate investments.

6. RDP – Workstation manufacturing.

7. Rhett Herbals & Rhett Healthcare – Pharmaceuticals.

8. MBR 1 (Dubai) – Security and housekeeping services.

9. Capital Techsol – IT software development.

10. Virgo Global @Nakoda Logistics – BSE-registered company.

11. OJAS (India, Singapore, UAE) – Staff augmentation and software development.

12. Hash Block – Software development company.

13. Well Fella Inc – Herbal business.

14. Swastik Ghee – Dairy products.

Previous offences

The accused had previously engaged in fraudulent activities through Blulife International Company, deceiving the public via a multi-level marketing scheme. A case was registered under Crime No. 126/2022 at Chevella PS, Cyberabad, under IPC Sections 420, 406, 120(B) and the Prize Chits and Money Circulation Schemes (Banning) Act, 1978.

Ongoing Investigation

Authorities are actively investigating to:

- Trace and recover misappropriated funds.

- Identify additional individuals involved in the fraud.

- Ensure justice for the affected depositors.

Public advisory

Cyberabad Police urge the public to exercise caution before making deposits in schemes promising high returns. Investors are advised to verify the legitimacy of financial companies through regulatory bodies such as SEBI and RBI.