Bail denied to Andheri man who defrauded 91 investors through Ponzi schemes

Ninety-one people invested ₹3,70,30,000 and received returns only in the initial few months. From October 2022 onwards, most stopped receiving profits nor their principal amounts

MUMBAI: A special court under the Maharashtra Protection of Interest of Depositors (MPID) Act recently denied bail to Umesh Ramdhan Raypure, the proprietor of an unregistered investment firm through which he allegedly duped 91 investors of over ₹3.7 crore by luring them with fraudulent high-return schemes.

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Special judge R K Deshpande on October 18 dismissed Raypure’s plea for regular bail, observing that charges have been framed against him already and there was “no change in circumstances” warranting reconsideration of bail.

According to the prosecution, between 2019 and 2022, the accused induced people to invest through his Andheri-based firm, Siddharth Profit House, and promised daily returns of 1 to 1.5%. He also offered loans covering 70% of the cost of a house. Ninety-one people invested ₹3,70,30,000 and received returns only in the initial few months. From October 2022 onwards, most stopped receiving profits nor their principal amounts. The court also noted that Raypure had created WhatsApp groups where he sent messages explaining the benefits of various investment schemes his firm floated. “Some of the employees of Airport Authority of India have also invested their money in the Ponzi scheme of the accused and have suffered loss,” the court said.

In his defence, Raypure claimed that all transactions were legitimate and that the investors were fully informed about the risks. His counsel argued that his arrest was illegal due to non-compliance with Section 50 of the Criminal Procedure Code, which mandates informing an arrested person of the grounds of arrest.

Rejecting this contention, the court held that the investigating officer had complied with it and provided details about the arrest to his mother, Ratnamala Ramdhan Raypure.