Mumbai: The Crime Branch has arrested two people for their involvement in a Rs 400 crore Ponzi scheme. Manikkam Udaiyar (40), and Madhayan Udaiyar (36), were produced in court and sent to police custody until August 17. The main accused, Ashish Shah (44), was arrested on July 11 and is currently in judicial custody.
Shah allegedly posed as a Securities and Exchange Board of India (SEBI) agent, convincing people to invest in various schemes and the stock market, promising high returns. Manikkam and Madhayan assisted Shah by posing as agents and defrauding multiple victims.
The investigation revealed that Manikkam and Madhayan used the money from victims to purchase flats and shops. The police seized two cars, a Toyota Fortuner and an MG Hector, from them. Previously, cars, motorcycles, gold, cash, and mobile phones worth Rs9 crore were seized from Shah.
Shah operated mainly in Mumbai and Mira Bhayander, targeting investors from south India. He took the money, claiming to invest it in the stock market, but neither invested it nor returned the principal amounts.
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One of the victims, Jaipal Kodar, a transport businessman from Andheri West, lost Rs1.70 crore. He, along with others who collectively lost Rs9.63 crore, filed a case with the Versova police on July 11.
