HYDERABAD: The Hyderabad police have arrested 10 accused in connection with a Rs 903 crore massive investment fraud that was being carried out by Chinese nationals across various regions of India via Dubai and Cambodia.
A Taiwanese national who is the kingpin in India was among the 10 accused arrested during the two-month operation. "This is the first time a large-scale conspiracy that posed a threat to the nation's economic system has been exposed. These individuals have not come under the radar of any law enforcement agency," said city police commissioner C.V. Anand. He claimed that the Chinese criminal groups siphoned off Rs 903 crore from their victims and sent it to Chinese nationals living abroad. The investigation has shown that fraud has been committed through hawala.
The arrested include Chu Chun-yu, a Taiwanese national and the network's kingpin, Lec alias Li Zhonjun, a Chinese national, Navneeth Kaushik, the owner of two Authorized Money Changers (AMC), three agents in Hyderabad, and other agents from Pune, Delhi, and Mumbai.
The city police unearthed the fraud while looking into a citizen's complaint that he had been scammed after paying Rs 1.6 lakh in the investment app Loxam. Following an investigation, it was discovered that the complainant's funds were transferred to Xindai Technologies Pvt Ltd. This bank account was opened in the name of Xindai Technologies Pvt Ltd by one Virender Singh in Pune.
Further investigation led police to another firm, Betench Networks, whose bank account was registered by another accused, Delhi-based Sanjay Kumar. He admitted that he opened the bank account at Lec's request and gave the login information to two people — Pei and Husan Zhuan — thought to be in China.
These two people run a firm in China from which they control the network of investment fraud. Additionally, Sanjay Kumar opened 15 additional bank accounts and gave Chu Chun-yu access to them. In response, Chun-yu sends SIM cards, credentials, and bank account information through courier to their partners in Cambodia and other nations, said C.V.Anand.
Veerender and Sanjay received commission payments of Rs. 1.20 lakh each for setting up bank accounts that the Chinese nationals would use to collect money from victims all throughout the nation.
Money was sent from Xindai to 38 different accounts, including those of three agents with offices in Hyderabad. City-based agents Syed Sultan and Mirza Nadeem Baig opened bank accounts in Hyderabad and gave them to Imran in Dubai, who used them for investment fraud and paid them commission.
Ranjan Money Corps and KDS Forex Pvt Ltd, both AMCs licensed and operated by Navneeth Kaushik, gathered and converted the funds from 38 accounts for use on international tours and travels. The foreign currency was then handed over to another accused Sahil and Sunny, who transferred them abroad through hawala channels.
