Massive Ponzi Scheme Unravels: Fake Mutual Benefit Company Defrauds Investors Over ₹93 Crore
A fraudulent mutual benefit company deceitfully obtained over ₹93 crore from investors, promising high returns. The scheme, led by Kripa Shankar, his family, and several accomplices, unraveled when investors found the company's office shut. Law enforcement has initiated investigations to hold those involved accountable.
- Country:
- India
A major fraudulent scheme involving a fake mutual benefit company, 'Very Well Mutual Benefit Nidhi Limited', has defrauded unsuspecting investors of more than ₹93 crore, according to police reports released on Thursday.
An FIR was lodged at the Gyanpur police station against 15 directors of the company for dishonest misappropriation of property under Bharatiya Nyaya Sanhita section 314(4). The operation, headed by Kripa Shankar and his family, continued even after his death, with promises to double investors' money. Upon attempting to withdraw funds, investors discovered the company office locked and the directors vanished.
Investigations revealed the absence of an official bank account, with funds diverted to a front organization, Micro Credit Foundation, at Indian Bank's Gyanpur branch. Authorities are on the hunt for the elusive directors, accused of harbouring political and social influence, and insist that stringent measures will be implemented to ensure justice.
(With inputs from agencies.)
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