UP Police busts Rs 3700-cr online trading scam which duped 7 lakh investors
Police said the company named Ablaze Info duped around 7 lakh people and took an investment totalling approximately Rs 3,700 crore from them.
The Uttar Pradesh Police's special task force on Thursday busted an online trading fraud syndicate that duped over 7 lakh people to the tune of Rs 3,700 crore on the pretext of getting money for clicking on web pages.
According to a report in The Hindu, the task force arrested three persons and sealed the bank accounts of the company, Ablaze Info Solutions Limited, located in Noida Sector-63. The company had a total balance of Rs. 500 crore.
“We have arrested the company’s owner, Abhinav Mittal, its COO Sridhar Prasad and technical head Mahesh Daya. Mittal has a B.tech degree and Sridhar is an MBA degree holder,” said Special Task Force SSP Amit Pathak.
“The company has accounts in several banks and some bank employees are also under scanner. We will soon initiate action against these officials. We have informing ED, SEBI and RBI about the fraud," Pathak added, according to the report.
The owner of the company, according to victims, portrayed himself as the “Mark Zuckerberg” (Facebook owner) of the country. He had launched a social networking site to lure the customers. The report, quoting victims, said the company even claimed to be starting its own private bank to deal with the customers as the size of its transactions was growing rapidly.
According to the SSP, the company has so far done the business of over Rs. 3,700 crores. “We have written a letter to the authorities concerned to stop transaction of Rs. 524 crore of the company. We wanted to continue our probe for another week, but the information of our investigation reached the company top brass and they had started to transfer money to other accounts,” Pathak told the English newspaper.