Hyderabad police bust multi-crore Chinese investment fraud, 10 held

The arrested persons are Sahil Bajaj, Sunny @Pankaj, Virender Singh, Sanjay Yadav, Navneeth Kaushik, Mohammad Parvez (Hyderabad), Syed Sultan (Hyderabad), Mirza Nadeem Baig (Hyderabad), Chinese national Lec @Li Zhongjun and Chu Chun-yu (Taiwan National).

Disclosing this at a press conference here, Hyderabad City Police Commissioner C V Anand said, "Based on a complaint lodged by a resident from Tarnaka here that he was cheated after investing Rs 1.6 lakh in an investment app called ‘ Loxam,’ cyber crime police have registered a case."

"During the investigation, it was found that the money of the complainant was deposited in the bank account of Indus Ind Bank in the name of ‘ Xindai Technologies Private Limited," he said.

This bank account was opened by Virender Singh and he was arrested in Pune.

During the interrogation, he revealed that the bank account was opened in the name of Zindal Technologies on the advice of one Jack (Chinese) and gave the internet banking user name and password of the bank account to Jack.

Sanjay Yadav of Delhi also opened the account of Betench on the instructions of Lec and gave it to Pei and Husan Zhuan in China, the police Commissioner said.

Similarly, he opened 15 other bank accounts and informed them to one Chu Chun-yu of Taiwan who is temporarily residing in Mumbai and was arrested yesterday in Mumbai.

Chu Chun-yu sends account details, user ID, password and Sim cards to other countries.

Sanjay and Virender received Rs 1.2 lakh commission per account which was arranged by Lec, Anand said.

The money was transferred from the account of Xindai Technologies to 38 other bank accounts and it also went to the bank accounts of Syed Sultan and Mirza Nadeem Baig. They both opened bank current accounts for the sake of the commission as per instructions of Parvez, who in turn gave those bank accounts to Imran who resides in Dubai.

A large amount of money from the 38 accounts of Xindai Technologies went to Ranjan Money Corp and KDS Forext Private Limited, the Commissioner stated.

Navneet Kaushik in turn sends the money received in the bank account to the Forex exchanges run in the name of International Tours and Travels. He converts the money receiving rupees to US dollars in cash and gives it to Sahil and Sunny in US dollars.

The money changers and Forex exchanges are licensed by RBI.

Sahil and Sunny alias Pankaj joined hands with other fraudsters and transferred the money abroad through hawala.

The transactions in the account of Ranjan Money Corp Private limited was to the tune of Rs 441 crore in a period of 7 months while another Rs 462 crore transactions were done in KDS Forex account.

It has come to light during the investigation that fraud has been committed through hawala to the extent of Rs 903 crore and so far, Rs 1.91 crore have been frozen in various bank accounts in the case, the top police official added.

(With UNI inputs)