Two arrested in Rs 530 crore investment fraud

 Hyderabad: Sleuths of the Central Crime Station of the Hyderabad city police on Wednesday arrested two persons, Gudhe Rambabu and Penmetsa Krishnamraju, in a Rs 530-crore business investment fraud case. The accused had cheated over 200 people.

The two initially started a chocolate distributor business in Vijayawada and earned profits from it. Later, they started a firm called Fast Moving Consumer Goods and collected about Rs 530 crore investments from their relatives, friends and about 200 people promising them to give six per cent profit per month on their investments.

For a few months, they paid profits to the investors ranging from six to 13 per cent. In August, 2023, when the investors asked the accused about their original payment, they fled away from their residence in Madhapur, following which the investors lodged a complaint with the police.

While the investigation was going on, the police got a tip off about their presence at Gachibowli and detained them. The police recovered gold ornaments of around 2.5 kg and Rs 4 lakh cash from them. Investigations revealed that the accused had paid Rs 427 crore to the victims in the name of profits, Rs 50 crore spent on maintenance of office and employees. They also paid Rs 12 12 crore to distributors and gold traders as commission. Both the accused also shared Rs 20 crore each, said joint CP (Crimes & SIT) Gajarao Bhupal.