Mumbai Police Bust Rs 30 Crore Ponzi Racket in Aarey Colony, Arrest Four
The Economic Intelligence Unit of the Mumbai Police’s Economic Offences Wing has busted an alleged Ponzi and multi-level marketing racket that collected around Rs 30 crore from investors, conducting raids at multiple locations including Palm House in the Aarey Colony area.
Police arrested four individuals identified as Shrikrishna Pandurang Chavan, Ankush Shantaram Patil, Dr Sudesh Mohite, and Subhash Pandhere in connection with the fraudulent operation.
The scheme operated under the names AI Origin and Digital Origin, luring investors with promises of 5 to 7 per cent returns. Investigators revealed that the accused claimed investor funds were being deployed into BMC contracting, gaming applications, and solar projects. However, police inquiries found no substantial evidence of these underlying businesses or projects.
To uncover the network, police officers conducted an undercover investigation by posing as potential investors to understand the mechanism of the scheme. Cyber analysis of the mobile application and field inquiries helped officers map the wider network across Maharashtra, Goa, and Karnataka.
The racket functioned through a multi-level marketing structure where participants initially paid Rs 1,500 for membership and gained access to a mobile application. Members were promised earnings once they added around 500 new members, leading to rapid expansion of the investor base.
Raids were carried out across five locations, including the primary office in Palm House at Aarey Colony, an office in Vasai, and three other sites. During the searches, police seized approximately Rs 12 lakh in cash, a BMW car, a Verna car, and seven laptops, alongside records of nine bank accounts.
The investigation also revealed that the accused had previously taken around 60 people to Thailand as part of promotional activities. The arrests were executed just before the group could host an office inauguration event scheduled in Satara.
The Economic Offences Wing is continuing its investigation to identify additional investors, agents, and associates involved in the network.
