Four held in Kolar over alleged Rs 50 crore work-from-home fraud
Kolar: Police have arrested four people in Kolar for allegedly looting thousands with the promise of work-from-home income and quick returns on investments. The accused have collected over Rs 50 crore from victims through a network operated under the name Sri Kalikadevi Enterprises, said police.
The arrested have been identified as Bhoomi Kiran Shetty, 28, from Bengaluru; wife Aarthi, 23; Ramya of Ballahalli in Kolar; and Venkatachalapathi alias Swamy, manager of the enterprise’s Budikote branch.
According to the police, Kiran Shetty and Aarthi established the enterprise and approached members of the public with offers of home-based packing work. People were promised an opportunity to earn several thousand rupees by packing products such as incense sticks, candles and paper plates.
The victims were required to pay deposits running into thousands of rupees before receiving the promised work. Police suspect that the operators collected large sums from customers across several locations and continued to attract fresh deposits by assuring them of returns.
The alleged fraud came to light when customers who had deposited money began demanding refunds. The company stopped making payments, prompting several victims to approach the police.
Cases have been registered at Galpet, Budikote, Chikkajala, Devanahalli and Doddaballapur rural police stations. Investigators suspect that around 7,000 to 8,000 people may have been cheated and that the total amount collected could be over Rs 50 crore.
Police are also examining the activities of branches in Debbanahalli and Budikote, where deposits were collected from residents of Kolar and neighbouring Andhra Pradesh and Tamil Nadu.
Investigators said the Budikote branch alone had collected around Rs 10.53 crore from 1,121 people. Branch manager Venkatachalapathi was arrested in connection with this case.
The police investigation has also brought to light complaints against other private establishments in Kolar district that allegedly lured people with promises of doubling or tripling their investments within a short period.
In one case registered at Galpet police station, more than 350 people have reportedly approached the police, that they were cheated of more than Rs 6 crore. Investigators suspect that the accused initially paid returns to some investors to create confidence before allegedly shutting down their operations.
Similar complaints have emerged from Devanahalli, Doddaballapur and Chikkajala, prompting police to examine whether the cases are connected and whether a larger network was operating across the region.
Several victims are said to have invested money that they had saved over many years. Among them were retired government teachers, people who had sold land, families who had raised money by pledging jewellery and parents who had saved funds for their children’s marriages.
Police are now tracing the financial transactions of the accused and examining bank accounts and other records to determine the exact amount collected from victims. Investigators are also trying to identify other people who may have played a role in collecting deposits or managing the alleged network.
The accused have been arrested and remanded to judicial custody. Further investigation is underway, while victims have appealed to the authorities to recover their money and ensure that their savings are returned.
