Former Mason Orchestrates Massive ₹670-Crore Investment Fraud in India
A Hyderabad man allegedly defrauded 7,400 investors using a classic Ponzi scheme structure.
1Massive Financial Fraud Uncovered
Authorities in Hyderabad are investigating a ₹670-crore investment fraud involving approximately 7,400 victims across India. The scheme was allegedly orchestrated by Nanavath Bhupal Naik, a former mason who transitioned into financial services. The Cyberabad Economic Offences Wing is currently handling three separate cases linked to the suspect's two primary companies.
2Unrealistic Return Promises
Naik allegedly lured investors by promising consistent monthly returns of nearly 4%. These funds were collected through two entities, Shares Bazaar Pvt Ltd and Kisaan Parivar Ltd. Investigators found that neither company possessed the necessary regulatory authorization to accept public deposits, marking the operation as a clear violation of financial laws.
3Classic Ponzi Scheme Mechanics
The operation functioned as a classic Ponzi scheme, where capital from new investors was used to pay returns to earlier participants. This unsustainable cycle continued until it collapsed in 2025. By failing to generate legitimate business revenue, the scheme relied entirely on constant recruitment to maintain the illusion of profitability.
4Suspect's Professional Background
Before entering the financial sector, Naik worked as a petrol pump attendant and a mason. His entry into the stock market began in 2013-14 as a brokerage agent, which provided the client network he later exploited. He eventually established a brokerage franchise in 2016 to further expand his reach among prospective investors.
5Limited Asset Recovery
Despite the massive scale of the alleged fraud, police have traced only ₹35 lakh across 70 bank accounts linked to Naik and his directors. Investigators have identified various properties and assets suspected to be tied to the misappropriated funds. The Economic Offences Wing has already received over 500 formal complaints from victims.
6Inquiry and Forensic Audit
The Economic Offences Wing has ordered a comprehensive forensic audit of both Shares Bazaar Pvt Ltd and Kisaan Parivar Ltd. This audit is expected to conclude within the current month, providing clarity on the flow of funds. Officials are working to map the full extent of the financial trail left behind.
7Deceptive Business Fronts
Kisaan Parivar Ltd was originally registered with the stated goal of promoting organic farming by pooling agricultural land from marginal farmers. However, the company remained largely inactive for years, serving primarily as a vehicle for the alleged fraud. This discrepancy highlights the deceptive nature of the investment entities involved in the case.
8Broader Regulatory Implications
This case underscores the persistent risks associated with unregulated investment schemes promising high, fixed monthly returns. The collapse of Naik's operation serves as a reminder of the dangers inherent in bypassing formal financial institutions. Authorities continue to urge caution as they work to identify and recover assets for the thousands of affected investors.