Maha: Two booked for cheating investors of Rs 20 lakh in Nagpur

An offence has been registered against two brothers for allegedly floating a ponzi scheme and cheating investors to the tune of Rs 20 lakh in Maharashtra’s Nagpur district, police said on Sunday.

Based on a complaint lodged by an investor, the police on Saturday registered a case under section 420 (cheating) and other relevant provisions of the Indian Penal Code and Maharashtra Protection of Interest of Depositors (In Financial Establishments) Act, an official said.

The accused allegedly floated two ponzi schemes — Aryan Pratidin Fund and Aryan Reserve Fund — in January 2016, and lured investors with promise of high returns, he said.

The accused collected Rs 20 lakh from investors and defrauded them, the official said, adding that further probe is underway.