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Noida online scam: UP top cop says SIT will be set up to probe Ponzi scheme

Director General of Police, UP, Javeed Ahmed posted a tweet on Friday, saying a Special Investigation Team (SIT) will be formed to probe the R3,700 crore-scam being run by Anubhav Mittal in the name of Ablaze Info Solutions Limited.

delhi Updated: Feb 03, 2017 23:51 IST
Noida online scam,Noida trading scam,Noida Ponzi scheme
Anubhav Mittal (centre) was arrested on Thursday. He is being questioned by the UP Special Task Force officers. (Handout)

Director General of Police (UP), Javeed Ahmed, on Friday said an Special Investigation Team (SIT) will be set up to probe the Rs 3,726 crore Noida online scam.

In a tweet posted on social media on Friday, Ahmed congratulated the STF for busting the cheating racket which targeted people from across North India and announced the formation of an SIT.

“Kudos STF for busting Rs 3700 crore internet-based cheating racket across North India. Will set up SIT for comprehensive investigation(sic),” tweeted Ahmed.

Read: Noida online trading scam: How a company duped nearly 7 lakh people of Rs 3,700 crore

On Thursday, a team of STF raided the office of Ablaze Info Solutions Private Limited (AIS) at Noida Sector 63 and arrested Anubhav Mittal, managing director, Sreedhar Prasad, chief executive officer and Mahesh Dayal, technical head. The trio were charged under IPC sections 420 and 406 for duping 7 lakh investors of Rs 3,726 crore rupees by running a Ponzi scheme under the guise of social media penetration.

“They used to ask one time investment from people and in return, a certain number of links per day were provided by them to each investor. The investor were paid Rs 5 per like on the particular facebook link and this way the money circulation was carried by the company,” said Raj Kumar Mishra, deputy superintendent of Police, Special Task Force.

On Friday, the trio were produced before the magistrate and sent to 14 day judicial custody for further interrogation.

“We have also informed Reserve Bank of India, Income Tax department and The Securities and Exchange Board of India (SEBI),” said Mishra.

The trio were arrested after two investors lodged a complaint against the founder of the company for duping them in January this year. The STF also received information that the company had deposited huge sums of money in different bank accounts in a short span of time.

First Published: Feb 03, 2017 23:51 IST