EOW busts ₹6cr scrap racket after accused surrenders in Delhi court

EOW officials said they are now probing possible accomplices and attempting to trace the flow of funds to recover losses and identify additional victims, if any.

The Economic Offences Wing (EOW) of Delhi Police on Tuesday arrested a 41-year-old man for allegedly orchestrating a ₹6.35 crore fraud through a bogus scrap trading business that duped at least 38 people across the city. 

The victim’s complaint prompted a wider investigation, which uncovered 37 more victims who reported being duped using similar tactics, police said (File photo)

The accused, identified as Zamil Akhtar, was arrested after he surrendered at Karkardooma Court following months on the run, police said. He was placed in police custody for further interrogation. Akhtar was booked under relevant sections of cheating and forgery under the Bharatiya Nyaya Sanhita (BNS), police said.

According to deputy commissioner of police (EOW) Vikram K. Porwal, Akhtar operated the scheme from New Mustafabad in northeast Delhi, luring dozens of investors with fake promises of high returns from a non-existent scrap trading venture.According to police, the accused first contacted the victims through a door-to-door approach.

“His scheme had all the hallmarks of a well-worn con: forged documents, manufactured credibility, and the skilful deployment of familial accomplices,” said DCP Porwal.

“A local resident, Riyazull Hasan Khan, was the first to raise the alarm. He alleged that Akhtar not only claimed to run a flourishing enterprise but also introduced his family members as business partners, enhancing the ruse with a façade of trust,” Porwal added.

Khan’s complaint prompted a wider investigation, which uncovered 37 more victims who reported being duped using similar tactics, police said. The total loss reported across these complaints was pegged at ₹6.35 crore. Police said that the scams began in 2021 and was discovered last year.

 “In a textbook Ponzi operation, where there was no real business, Akhtar was rotating funds—using money from one victim to pay others, falsely presenting these payments as profits, until the system inevitably collapsed under its own weight,” said Porwal.

“During the investigation, it was revealed that forged documents were shown to victims to build trust, and once investments were made, Akhtar disappeared from the area,” the DCP said.

EOW officials said they are now probing possible accomplices and attempting to trace the flow of funds to recover losses and identify additional victims, if any.