City Police Bust Chinese Investment Fraud Of Rs 903 Crore

The Hyderabad Cyber Crime Police have arrested 10 persons accused of running a hawala scam from Delhi and Mumbai.

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

Based on a complaint lodged by a resident of Tarnaka, the Cyber Crime Police registered a case and took up investigation. The complainant said that he had been cheated after investing Rs 1.6 lakh in an investment app called LOXAM. Upon investigation, it was found that the money of the complainant was deposited in an account in IndusInd Bank in the name of Xindai Technologies Pvt Ltd.

The bank account was opened by Virender Singh in the name of Xindai Technologies. When Singh was arrested and interrogated in Pune, he revealed that he had opened the account on the orders of one Jack (a Chinese national) and had given the internet banking username and password of the account to Jack.

During investigation, it came to light that the bank accounts of a Betench Networks Pvt Ltd and Xindai Technologies Pvt Ltd shared the same phone number. One Sanjay Yadav of Delhi had opened the account of Betench Networks on the instructions of Li Zhounjau, and given access to a Pei and a Huan Zhuan in China.

Yadav had also opened 15 other bank accounts and sent their details to Chu Chun-yu, who is temporarily residing in Mumbai and was arrested there yesterday.

Chu Chun-yu used to send the account details, usernames, passwords and SIM cards to other countries.

Yadav and Singh received Rs 1.2 lakh per account, arranged by Li Zhounjau.

Money was transferred from the account of Xindai Technologies Pvt Ltd to 38 other bank accounts. It also went to the bank accounts of Hyderabad-based Syed Sultan and Mirza Nadeem Baig. Sultan and Baig opened bank current accounts for commissions as per instructions of Parvez. Parvez in turn gave access to those bank accounts to an Imran who resides in Dubai. Imran along with others used these accounts for investment frauds.

A large amount of money from the 38 accounts of Xindai Technologies Pvt Ltd went to a Ranjan Money Corp and a KDS Forext Pvt Ltd. Navneeth Kaushik in turn used to send the money for forex conversions in the name of International Tours and Travels. He used to convert the money received in rupees to US dollars in cash and give it to Sahil and Sunny. Sahil and Sunny joined hands with other fraudsters and transferred the above money abroad through hawala.

The transactions in the account of Ranjan Money Corp are to the tune of Rs 441 crore in seven months. Transactions of another Rs 462 crore were done in KDS Forex Pvt Ltd's account, totalling Rs 903 crore.

So far, Rs 1.91 crore have been frozen in various bank accounts in this case.