Investment Fraud Racket Busted In Delhi; Three Arrested

Delhi Police have dismantled an investment fraud racket, arresting three individuals for allegedly swindling a retired government official of over Rs 45 lakh through a deceptive trading app.

The Delhi Police has busted an investment fraud racket and arrested three people, including a bank official, for allegedly duping a retired government officer of over Rs 45 lakh through a fake trading application, an official said on Sunday.

With the latest arrests, the total number of accused held in the case has risen to five, he said.

The accused have been identified as Kapil Bain (25) and Manoj Sharma (26), both residents of Udham Singh Nagar in Uttarakhand, and Kamal Pandey (24), a resident of Gadarpur in the same district, who was working as an assistant manager in a bank.

Modus Operandi of the Investment Fraud

The case surfaced after a retired government official reported that he had been cheated of Rs 45.33 lakh on the pretext of investing in the share market through a mobile application posing as a legitimate trading platform.

"The fraudsters impersonated representatives of reputed investment firms and lured the victim into investing in IPOs by promising high and assured returns. They used a professionally designed fake application and website to gain his trust," a senior police officer said.

Investigation and Money Trail

Investigations revealed that the defrauded amount was routed through multiple mule bank accounts, which were opened using economically vulnerable individuals, and quickly withdrawn after deposits.

Kapil Bain and Manoj Sharma allegedly operated these mule accounts, where the cheated money was deposited and withdrawn through cheques on the same day, the police said.

Role of the Bank Official

The role of Kamal Pandey emerged during the probe. He allegedly facilitated the fraud by helping open mule accounts, sharing sensitive transaction details and expediting withdrawals within bank premises, the officials said.

The arrests were made during a coordinated operation in Udham Singh Nagar following sustained technical surveillance. Bain and Sharma were traced first, while Pandey was later apprehended based on their inputs, they said.

Ongoing Investigation

The police said further investigation is underway to identify other syndicate members, trace the money trail and locate additional victims targeted through similar fraudulent platforms.