CBI takes over probe into ₹1.86 cr fraud by investment firm

The CBI has taken over the investigation of two cases of fraud worth ₹1.86 crore by High Brow Market Research Investment Adviser Pvt Ltd. The cases involve allegations of cheating and criminal breach of trust.

MUMBAI: The Central Bureau of Investigation (CBI) has taken over investigation in two cases of alleged fraud worth ₹1.86 crore by High Brow Market Research Investment Adviser Pvt Ltd, an Indore-based market research consultancy and investment firm. The cases, first registered by Mumbai and Sindhudurg police, were transferred to the CBI following a January 12 order of the Bombay high court.

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One case was registered by the DN Nagar police in Mumbai, based on a complaint lodged by an investor. The complainant alleged that from January 2018 to July 2018, he transferred funds worth ₹1.61 crore to the bank account of High Brow Market Research Investment Adviser Pvt Ltd, with three of the firm’s employees telling him that they had invested the amount in the share market.

The firm allegedly assured returns of over ₹7.54 crore to the complainant, including the invested sum of ₹1.61 crore and a profit of ₹5.93 crore. But no money was returned to him despite his continuously contacting company officials, nor was he provided any documents or electronic evidence of purchase of shares, said a CBI official. “The firm cheated the complainant and misappropriated funds worth ₹1.61 crore. This discloses the commission of offences of cheating, criminal breach of trust with common intention,” the official said.

The second case handed over to the CBI was registered by the Kudal police station in Sindhudurg district. It was based on a complaint by a teacher, who alleged that he had invested ₹25.50 lakh with the firm in 2017-18 as he was lured by the promise of handsome profits, but he did not receive any returns from the firm.

On Wednesday, the CBI registered two separate cases against the firm and its directors and employees under sections 406 (criminal breach of trust), 420 (cheating) and 34 (common intention) of the Indian Penal Code. CBI sources said the alleged misappropriation took place between 2017 and 2019.