Panchkula couple booked for defrauding investors of ₹16 crore

The duo, Nitin Dua and Sangeeta Dua, residents of Sector 8, Panchkula, had allegedly gained inside information from UCO Bank, Sector-8 Panchkula, and Karnal, about properties that were likely to turn non-performing assets (NPA) and brought these at dirt-cheap rates before luring their victims to invest in these

A couple in Panchkula has been booked for allegedly defrauding multiple investors to the tune of ₹16 crore on the pretext of high returns on investments in real estate and finance ventures.

The investors became suspicious when the accused began to delay payments and gave excuses, claiming that the financial year’s closing and a slump in the real estate market were causing delays in refunding the investments. (iStock)

The duo, Nitin Dua and Sangeeta Dua, residents of Sector 8, Panchkula, had allegedly gained inside information from UCO Bank, Sector-8 Panchkula, and Karnal, about properties that were likely to turn non-performing assets (NPA) and brought these at dirt-cheap rates before luring their victims to invest in these.

The case was brought to light by Kuldeep Arora, a Panchkula resident and one of the primary complainants. According to Arora’s complaint, the fraud began in May 2022, when he met the accused duo, who were seeking assistance in purchasing a petrol pump. Over time, the accused presented themselves as successful businesspeople involved in various ventures under names such as Mahashivansh Investors and Developers Pvt. Ltd., Jai Guru Ji Real Estate, and Maa Vaishnavi Vaastu and Jyotish Kendra. They allegedly boasted of earning vast sums of money and promised high returns to anyone willing to invest with them.

Arora and others, including Sumit Kumar (another key complainant), invested substantial amounts of money on the properties offered by the accused. Arora initially invested ₹24 lakh in February 2023. Subsequently, Kumar invested ₹6 crore, believing that the return would be swift and substantial. The duo had allegedly gained the trust of their victims by repaying small amounts at first, thereby enticing them to reinvest.

As months went by, several other investors, mostly family members and friends of the complainants, also invested large sums, some even borrowing money from others to finance the transactions. Over the course of a year, the total amount invested by these individuals swelled to approximately ₹16 crore.

The accused, however, began to delay payments and gave excuses, claiming that the financial year’s closing and a slump in the real estate market were causing delays in refunding the investments.

The investors soon became suspicious and eventually learned that the accused had been using their money to buy properties, including a bungalow in Sector 35A, Chandigarh. The accused even used threats and intimidation, boasting of their political connections, and warned the victims against taking legal action.

Loss to public exchequer

Upon further investigation, it was revealed that the accused had used inside information from UCO Bank, Sector-8 Panchkula, and Karnal, about properties that were likely to become NPAs. They had allegedly coerced distressed borrowers to sell their properties at extremely low prices, while also manipulating the system to acquire these properties, often with the help of corrupt bank officials. The fraudulent transactions resulted in significant financial losses for both the borrowers and the bank.

The complainants claim that some of the properties acquired by the accused were undervalued in a way that deprived the public exchequer of substantial revenue. Furthermore, some of the properties were allegedly transferred to different names or shell companies to hide the trail of illegal acquisitions.

In a revelation, the complainants found a sale deed from June 2024, which showed that Sangeeta Dua had purchased a property on Railway Road, Karnal, at a fraction of its actual market value. One of the witnesses to the sale was an official from UCO Bank, raising serious questions about the involvement of bank personnel in the scam.

The accused duo, meanwhile, continued to evade calls and blocked the complainants after receiving the funds. When the complainants approached the accused for their refunds, they were met with excuses and threats.

The complaint was received in October 2024 and after investigation by senior officers, the matter was received at the police station, and a case under the sections 316(2) (criminal breach of trust), 318(4) (fraud), 338/336(3)/340(2) (forgery), 351(2) (criminal intimidation), 61(2) (criminal conspiracy) of the Bharatiya Nyaya Sanhita was registered at Sector-7 police station in Panchkula.